Risk Assets Update

 There seemed to be a bit of late day arbitrage activity. As you can see, on a relative basis, the SPX (green) held up better then commodities until the end of the day when they converged. I think this was more arbitrage then anything else.

 If I add the EUR (inverse proxy for dollar strength), commodities tracked much closer to the dollar while the SPX held a bit above until the end of the day where it seems arbitrage programs may have kicked in where they all converged at the close.

 High Yield Credit is still holding up, it's relative cheapness and beta makes it a good choice for a quick bounce, but it tends to lead, so the fact it did not sell-off shows a positive divergence for the SPX here.

 Yields tend to lead the market, the macro picture shows the deterioration in to the bounce that was expected, short term toward the EOD, Yields moved up a bit, somewhat supportive of the market very short term, with the bigger picture showing the strength in price yesterday is really a facade. To the left in white, Yields led the market higher.

 This is the Euro again and the late day move in the SPX seems to just be an arbitrage move toward dollar strength.

 Corporate Credit sold off a bit, but still remains positively divergent and supportive of the market near term.

 As you can see in white, in the past market weakness with Credit strength has been able to lift the market higher. It is that negative divergence in red we are looking for to signal the end of the move.

Sector performance was interesting toward the end of the day, as mentioned earlier financials look weak and the continued leaking off all day, however what is surprising is the defensive Utilities sector started strong as would be expected on a market move down, but leaked off from there, almost indicating the market is expecting another risk on move. Healthcare did the same to a lesser degree. Industrials and Discretionary started to strengthen, again indicative of a risk on move and although small, Tech did the same.

My opinion remains pretty much the same after looking at these harts, it looks lie the bounce has a bit more to go with Tech taking the lead from financials.