Early failure of S&P to break 2035 even on a breakdown in USDJPY below 110 has now led higher, with the Energy DOE stats confirming the big Draw in inventories seen by yesterday's API stats and even at a greater rate, with 4.6 million reduction in oil inventories.. and crude yet again, has followed through on yesterday's short-term reversal, pressing back up just below 38. This resulted in JPY moving back above 110 , a key level given its own breakdown to new 17 month lows.. while S&P rebounded back to near the highs of the day.
Healthcare leading all sectors, as many wondering whether this Allergan inversion block leaves the door open now for others- Materials also the other sector higher by more than 0.50% while Utilities the only DOWN group-
9 of the top 20 performers today are Energy related, all up more than 3%.. as might be expected while WTI is higher by more than 3% itself.. while8 of the top 20 S&P performers today are healthcare related.
VRTX, BHI, HAL, OI, DVN, MRO, HES, ENDP, MUR all higher by more than 5%
HOG, VLO, WYNN, TSO, CF, MPC, ETN, NRG, KSU all down more than 2%..
Bottom line, despite the weakness in momentum and breadth, despite the attempted price failure.. SPX has held where it needs toand really cannot be properly faded until we see some evidence of a break
Area at 2034-6 remains KEY for S&P FUTURES- Tested now 3 times and has held- See on the far right the bounce that occurred in the last 2 hours and coinciding with Crudes spike
CRUDE staged large bounce after today's DOE stats showed an even bigger inventory draw than yesterday- Above 38 would mean Crude breaks out to join the S&P, not vice versa- For now, Crude is the one asset that most are paying attention to and following- German Bunds being another, which held former lows at 10 bps and rallying today