Despite the best efforts of ECB QE rumor-mongering, US equities could do no better than end unchanged (though Trannies are now rallying on lower oil prices). The early tumble on a quadruple whammy of bad macro data (misses for Service PMI, Dallas Fed, Pending Home Sales and IFO) was ramped into the European close and beyond after Reuters dropped a QE-headline. The initial jump in stocks was ignored by bonds but once they recoupled, bonds, stocks, and JPY moved in sync for the rest of the day on low volumes and extremely low liquidity.Treasuries rallied from overnight weakness to close very modestly lower in yield. Early weakness in oil (under $80) was rapidly recovered as despite USD weakness (-0.2% on the day), gold, silver, and oil ended down modestly (and copper higher after the cornering news). VIX continues its path of ignoring recent equity exuberance ending the day modestly higher.

Some final buying panic tried desperately to get the Nasdaq green for October...

as Trannies continue to surge off the Bullard lows...

Trannies jumped 0.5% today as the rest of the market was flat to slightly lower...

The full day...

Trannies now love lower oil prices...

The initial jump in stocks was ignored by bonds but once they recoupled, bonds, stocks, and JPY moved in sync for the rest of the day

VIX continues to be relatively bid compared to stocks as hedgers are careful into Wednesday's final QE FOMC meeting

The USD weakened, led by EUR and JPY strength...

Treasury yields drifted lower most of the day from overnight weakness to end just 0-1bps lower.

Copper popped on cornering chatter, Oil dumped and pumped and ended in sync with PMS...

Oil banged thru $80 but was rapidly rescued back...

Charts: Bloomberg