US stock market returns to bearish state after buyers completely absent throughout the morning. Yesterday's rally appears short-lived as last week's unemployment claims report shows no change with bonds yield surging early morning with 10Y touching near 4.78% before starting to retreat later. Market also notes large TLT put volume yesterday while bonds rally.
Although it reversed, the early morning bond market pressure was enough to scare investors. Entire NASDAQ and S&P500 indices start red from early morning with buyers losing important gamma level at 4250 pulling volatility up during the day. Most of the morning selling pressure concentrated in commodities and retail sectors
After 1 hour of selling, SPX finds bottom at put wall 4200, with yield continuing to pull back in the morning. Early morning and yesterday afternoon put hedge buying starts to decay strongly and buyers forced to cover, pulling put/call volume ratio diving back below 1.0 with buy/sell volume differential on both NASDAQ and NYSE returning to normal.
