ES Diverges Even More

I'm still working with my 3C template, but I'm glad I added some positions here and shortly I will reload the Risk basket template, for now, the early trend we spotted with risk assets diverging negatively from ES (synonymous with the S&P-500 for our purposes) has continued and widened. This is what I have been calling dislocation and these have been the opportunities that I have showed you with the credit/risk basket template that have made for excellent entry points as the market reacts emotionally, but credit and other risk assets show what the heavy hitters on Wall Street really think.

If you are very nimble, there may even be a day trade here worthwhile and I may play one in the options model portfolio.

For now, compare the CONTEXT model now vs the last update.

 This s the most recent CONTEXT update showing the negative divergence between the risk model and ES (S&P-500). Notice how much more it has diverged compared to the earlier chart below that was in my market update.

The start of the divergence earlier this morning.