Post-Election Volatility Crushes Rallies as Yields Respike

The 'relief rally' narrative was short-lived as the equity markets met a wall of supply at the psychological 6,000 level on the S&P. Early momentum driven by election clarity evaporated by the European close, replaced by a violent repricing in the bond market. The 10-year yield's push toward 4.60% acted as a gravity well, dragging the Nasdaq 100 off its session highs as terminal rate expectations shifted hawkishly once again.

Semiconductors led the initial charge but finished the day as a primary source of funds. NVDA saw heavy two-way flow, failing to hold the $150 breakout level despite strong buy-side imbalances at the open. The tape turned predatory in the final hour, with high-frequency algorithms hunting stops below the VWAP, punishing retail traders who failed to scale out of positions during the midday consolidation.

Financials provided the only real pocket of relative strength as the yield curve steepened, but even the KRE couldn't escape the late-day drift. We are seeing a classic 'sell the news' reaction where the macro uncertainty of the election has been replaced by the structural reality of sticky inflation. Tomorrow’s focus remains on the opening range; if the SPY fails to reclaim the 20-day EMA, expect a retest of the October lows.

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