Terrible housing data for the second day in a row, debt ceiling fears surging in bill markets, chaos in the energy complex as Hurricane Harvey nears landfall, more McConnell-Trump turmoil... and while stocks were lower, only Trannies really dropped... The market said...

Video length: 00:00:04

Debt Ceiling Default Doubts continue to surge...

(Click on image to enlarge)

Trannies were worst again but Small Caps managed gains...

(Click on image to enlarge)

Futures show what an odd day it was - algos lifted equity futures bit by bit overnight into the cash open and then stocks were dumped... and then when Europe closed, buying resumed...

(Click on image to enlarge)

Trannies also remain the only major index lower on the week...

(Click on image to enlarge)

Trannies closed in the red for 2017...

(Click on image to enlarge)

After Europe closed, S&P and VIX traded in a very narrow range...

(Click on image to enlarge)

S&P remains below its 50DMA...

(Click on image to enlarge)

Nasdaq VIX ended the day lower (after jumping higher in early going) as did Russell 2000 VIX...

(Click on image to enlarge)

FANG Stocks fell once again, but dip-buyers charged back in as Europe closed...

(Click on image to enlarge)

The AMZN headlines (cutting prices at Whole Foods) slammed the Packaged Foods index...

(Click on image to enlarge)

Food retailers led declines after Hormel and JM Smucker results missed estimates and Amazon said it would start cutting prices at Whole Foods locations next week, sending stocks like United Natural Foods, Kroger and Costco lower; the merger is expected to close Monday.

Treasury yields rose modestly on the day

(Click on image to enlarge)

30Y yields are outperforming on the week...

(Click on image to enlarge)

The Dollar Index rose modestly on the day (though its range was very small), but remains lower on the week...

(Click on image to enlarge)

On the week, cable was weakest and the Loonie was strongest against the dollar...

(Click on image to enlarge)

Bitcoin extended gains off Tuesday's lows as the civil war officially ended today...

(Click on image to enlarge)

Gold slipped lower by a few bucks but remains in a narrow range for last few days...

(Click on image to enlarge)

As Hurricane Harvey looks set to hammer Texas and shut in refining and production capacity, we note WTI is down (presumably refiners offline meaning less demand) as RBOB jumps over 3% (less supply from refiners)

(Click on image to enlarge)

Hurricane Harvey set to hit the refinery hub of the U.S. where some 45% of capacity is located. The closing of production facilities in preparation for the storm has reduced the need for raw product resulting in a lack of demand for raw crude.

And the Gasoline-WTI crack has spiked...

(Click on image to enlarge)

Finally, we note that for the first time since May, AAII sees more bears than bulls...

(Click on image to enlarge)

Which is odd since total assets in bear market funds just crashed to a record low...

(Click on image to enlarge)