By now you probably know what sent the market gapping higher, if not I'll follow up on that in the next post. Here are the opening indications thus far.
Credit/Risk Indicators, the High Yield Corporate, Euro to a large degree and commodities are pretty much in line with the S&P this morning, the Euro and commodities make sense and aren't odd, only High Yield Corporate Credit stands out.
Financials were initially sharp on the open but lost momentum pretty quickly.
High Yield Credit (not the same as Corporate Credit) hasn't done much of anything, it still hasn't passed last Tuesday's highs, it certainly hasn't moved anywhere near today's S&P move, just the scaling doesn't show very well how big the disconnect there really is.
The same with rates, the scaling doesn't show how bad the disconnect is, but as you can see, rates are still below Monday's highs while the market is well above that level, providing a strong dislocation.
ES has a current negative divergence, the green arrow is the 8 a.m. announcement.
The DIA thus far isn't even close to confirming on the 1 min hart.
You can see the 2 min chart hasn't moved much either.
Same with the QQQ
The SPY 1 min chart is no where near confirmation as of now.
Nor is the 2 min chart.
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