Leading Indicators Continue to Fall Off a Cliff

This isn't really  a new story, it's kind of picking up where we left off last week with Leading Indicators Not Helpful For the Market's Bulls.

I don't see any of the charts below as an impeachment to a very short term corrective bounce with support at the SPX 150 dsma, although I don't see them allowing much of significance beyond that.

 SPX daily chart w/ 100-zma (yellow) and 150 sma (pink) with support at the 150 sma today. #1 the head fake/false breakout, #2 the reversal and break of the 100-day, #3 support at the 150 ska, #4 the 3 candlestick downside reversal pattern, #4 a slightly bullish daily candle with support the 150-ma.

From most technical traders' perspectives (keeping in mind sentiment is very bearish right now, thus set up to flip sentiment and create opportunities, the second area of support at the 150 defines it as a support area with stops just below, thus any bounce from here will likely slice right through the 150-day on the reversal back down if they pull a bounce off here. Psychologically, the 150-day just became the focus of technical traders and the area where the most number of traders can be fooled.

Last week when the market was trying to bounce off the 100-150 ma's, we saw VIX slammed to help, it's the opposite this week...

 SPX (green) prices are inverted to show the normal correlation and it appears there's a solid bid under VIX/VXX, unlike last week's slamming of both assets to support the market's bounce/correction.

 The same thing today in short term VIX futures.

High Yield Corp. Credit is lagging the SPX so again , like last week, it's not being used to lead the market, rather it is leading the market to the downside, but it's much worse than it appears.

Here's a 60 min chart of HY Corp. Credit vs the SPX, a major Leading Indicator dislocation. Typically market prices will revert down to HY Credit,

 Pro sentiment intraday, like last week is not willing to chase ANY risk, not even intraday, which is what I said as well earlier today.

On a longer term basis, the leading indicator's dislocation is very large, this is major trouble for the market and very indicative of a top.

Here's a second version used for confirmation with the same signals.

It has seemed like 30 year yields (red) have been leading the SPX both up and then down and now they have both reverted to their mean. I would think a short term TLT pullback would send yields higher, but the counter trend rally would send them lower which if there is still a leading correlation between yields and the SPX would mean a very short term bounce of a day or two and then a strong momentum move down which actually fits nicely with the 150-day assumed support and slicing right through it.

And commodities have seemed to lead just like yields, first up and then down and now reverting to the mean in green.

HY credit with no short term manipulation of price continues to be in risk off mode.

And the larger picture there as well, also a problem for this market.