Risk Asset Update

There's a bit of a mixed bag thus far today, however the main story for the market is, "How far will the Euro get?"

A look at ES Context and the SPY arbitrage model.

 CONTEXT's ES model is still looking a lot better than it has over the last week or so, even as the two converge.

 The SPY arbitrage model is positive for the SPY.

 Commodities intraday are interestingly following the SPX rather than the EURO, although there is a bit of divergence between the performance of the Euro and that of the dollar, so it may be they are tracking the SPX mostly and the Dollar second.

 The longer term picture in commodities vs the SPX is not what I'd like to see, however commodities have severely underperformed the market for the entire year.

 High Yield Credit fell off a little thus far today, but it's still early, yesterday we saw some pretty extreme moves in some of these indicators in the afternoon to the upside.

 High Yield Credit sill not in line with the SPX after that steep plunge on Monday.

 High Yield Corp. Credit is once again contradicting High Yield as its momentum outperforms the SPX today.

 Bigger picture, High Yield Corp. credit is near the highs while the SPX is off the local highs, this means HYC credit is in a slight leading divergence.

 Yields which gained a huge spurt of momentum yesterday have backed off a bit today, but...

 that backing off puts them pretty much in line with the SPX and again, it's still early, yesterday Yields made a huge move in the afternoon.

 The $AUD's momentum is leading the SPX intraday, it shaped up quite a bit yesterday.

 Longer term it is well in line with the market and actually leading it.

 Here's the Euro's move today mentioned yesterday based on the charts.

Sector rotation vs the SPX shows financials rotating in, Tech is finally starting to see some momentum that has been missing the last several days. The safe haven sectors are in rotation today as well, which is interesting with Financials looking the way they do.