More dismal housing data, a VIX 9 handle, and bank stocks ripping higher (despite a big flattening in the yield curve) - just another day in Fed-land...

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Stocks and the long bond unchanged post-Fed, Gold down and dollar up...

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S&P and Dow ended the day just higher at record highs!!! thanks to post-fed dip-buying panic as Trannies surged...

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VIX was 'handled' back down to a 9 handle (first 9-handle close since July)... of course...look at the panic-bid in stocks as VIX was crushed in the last few minutes (to get S&P green)

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AAPL was notably hit, now down 5% from when the iPhone 8 was unveiled...

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As WSJ notes, Apple acknowledged problems with cellular connectivity in its newest smartwatch, raising questions about the device’s most significant feature days before it goes on sale in stores in the U.S. and other countries. In a statement Wednesday, Apple said the problem connecting to cellular networks occurs when the Apple Watch Series 3—the first watch from Apple to feature an LTE chip for cellular service—joins “unauthenticated Wi-Fi wireless networks without connectivity.” Apple said it is “investigating a fix for a future software release.”

Financials kneejerked higher today again but retailers snd Utes were weak...

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5Y Yields spiked most on the day (+5bps) but 2Y was the headline grabber, moving to its highest since Dec 2008 (but notably still below The Fed's 1.50% expectation for Dec...

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The long-end of the curve rallied on the day as the short-end snapped higher (in yield), crushing the yield curve...

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but Bank stocks didn't care about details like that...

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This is the biggest flattening of the yield curve since Dec 2016. 

Yellen: "rate hikes will be needed to sustain the economic expansion"

So rate cuts now hurt the economy?

— zerohedge (@zerohedge) September 20, 2017

5Y Yields are back at the same level as when the July FOMC meeting hit.

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and 30Y Yields ended the day lower...

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Another signal of Fed Fail is the fact that breakevens plunged today...

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The market still sees a 37% chance that The Fed won't hike In December...

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The Dollar Index spiked on The Fed's 'hawkish' statement, jumping by the most since January... (NOTE - this merely moved the dollar index back to payrolls levels)...

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Despite the dollar gains, WTI prices held on to gains on the day after DOE data with RBOB fading...

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