Stocks and bonds disconnected today (again) with Treasuries pressing to lower yields - 30Y down 1bp to 3.73%, rallying 3 to 5bps off mid-Europe-session high yields to new 10-week lows. Stocks and VIX disconnected today as VIX trading higher all day - even as stocks opened energetically higher. Stocks and credit disconnected today (again) as the afternoon pump in stocks back from European-close turmoiling lows was not seen in credit at all. Equity indices were very mixed today with the Dow underperforming (after its exuberant run Friday) and the NASDAQ the big winner thanks to AAPL. Retailers continue to diverge from the market. The USD closed marginally lower from Friday's close (with AUD and GBP strength the drivers) and commodities diverged with oil and copper higher and gold and silver lower (though well off their smackdown lows by the close) - with their worst day of the year.

The S&P 500 rallied to near all-time highs to open the day-session... (and managed to creep to unchanged year-to-date)

...before tumbling into the European close -

...only saved by AUDJPY rally to close practically unch...

VIX and Stocks disconnected...

Credit and Stocks disconnected...

Treasuries and Stocks disconnected

As bonds rallied non-stop following the worse than expected German consumer confidence...

Commodities diverged notably with PMs suffering their worst day of the year so far...

Charts: Bloomberg

Bonus Chart: The last time we saw such a wide divergence between the market and the Retailers ETF was at the top in 2007... (h/t Brad Wishak at NewEdge)