EOD Update

Today was the move that I characterized as pretty much, make it or break it, the move had to happen today or else the character of the market would have had such a profound and incredible change in character that it would be difficult to forecast as pure fear would replace any kind of system that we can track and true to our forecast, the market rose to the occasion, we will see to just what degree after the close.

However, while there's some minor distribution right now intraday in the IWM, SPY and QQQ, I do not see this as the end of the move, it really just got a start today and was really only about a half day's upside move. The IWM has put in what looks like a small inverted H&S bottom that I think traders will key off and either buy on a dip from here or buy based on the relative performance as the IWM is the day's laggard with the SPX.

In other words, more to come, which is fine by me for all of our purposes.

There's still a major lack of confirmation in the SPX/RUT Ratio indicator, HYG is leading the market to the downside as forecasted for this week and HY Credit is not biting on the move.

Other than that, sentiment Leading Indicators have improved since the last charts earlier today suggesting more upside tomorrow just as they suggested upside today from yesterday's readings.

HYG intraday did pause and move lateral, I suspect as some short term support or at least not adverse downside, but on the day it is doing what it has done since July and is leading the market  (well in the recent past, 4-7 days).

Prices are moving toward yields and while this is not a target I'd give any real serious consideration, right now the roughly implied SPX target is in the 2006 area.

Just be ready for new shorts as they are already showing the signals we are looking for in to higher prices.