ADP Reaction – Bonds & Bullion Surge As Dead-Cat-Bounce Stock Bulls Purge

ADP Reaction – Bonds & Bullion Surge As Dead-Cat-Bounce Stock Bulls Purge

Precious metals had begun to jump higher before the ADP data hit but once it did – and disappointed – gold and silver spiked (over $1,270 and $20 respectively). Equity markets kneejerk reaction was a spike higher which immediately faded into a crash to recent lows. Dow futures are testing 2014 lows – as are S&P 500 futures. 10Y Treasury yields touched 2.60%; Nikkei futures are once again testing 14,000 as USDJPY breaks below 101.

JPY is in charge as usual – and USDJPY broke 101 again…

But the reaction is clear…

Dow futures are testing 2014 lows…

Once again – as a gentle reminder – here is a chart showing how crucial this surprise in ADP is to Friday’s NFP surprise…

Charts: Bloomberg and @Not_Jim_Cramer

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