Economic Data continues to surprise to the upside (compared to what had been terrible expectations)…is this as good as it gets?

But credit, the yield curve, and now stocks are not loving it…

Small Caps were the only major index green today…

The Dow and S&P 500- fell for the 2nd week in a row – something they haven’t done for 3 months…Small Caps best on the week (followed by Nasdaq thanks to yesterday’s panic buy)…

Futures show the crazy moves this week better..

VIX was slammed late on today in a desperat ebid to get the S&P green on the week…

But while stocks rebounded briefly, FX carry wasn’t…

And nor was the bond market…

Big week for tax-related stocks…

SFIX went public today at $15…

While US HY bond prices ended the week higher (thanks to yesterday’s melt up)…but still remains well below its 200DMA…

US HY spreads rose for the 4th week in a row…

European HY Fund assets crashed to their lowest since June 2016…

Treasuries were mixed on the week with the front-end higher in yield and back-end lower….

The US Treasury yield curve crashed almost 10bps this week – the biggest flattening since Dec 2016 to its flattest since Nov 2007

Note that is the flattest 2s10s since Oct 2007… The last 3 times it was this flat, the US economy was in recession…

The Dollar Index had its worst week in over 2 months, dropping to 1-month lows… (this is also the first consective weekly decline in the dollar index since July)