What a day! Markets start off gangbusters and then fade sharply into the close. I’ve been saying repeatedly that with a lot of liquidity in the system, investors have been bidding almost all asset classes higher.
The carryover momentum from the end-of-quarter coupled with strong Asian and European trading from the previous evening was strong enough to start markets higher yesterday. But, by the time traders had a chance to digest lunch they must have taken a peek at bond yields and commodity prices to take stocks in a different direction. [See chart below, AMEX: SPY]