The Risk Asset layout is looking better and better, should it hold up in to a pullback, we'll have a great positive divergence.
High yield credit keeps improving this week, making a new high today
HY credit hasn't quite caught up, but if it holds and the market pulls back, they should be in line.
Yields have moved in to line and are looking very good.
As is the $AUD
And the Euro
Finally High Yield Corp. Credit is looking great having made a new high today.
Looking at the risk asset indications alone, it seems hard to believe we will see a pullback, but that's what 3C is showing. As mentioned above, a pullback in the SPX with these indicators just holding where they are now roughly, will present a positive divergence in the layout; the last time we had a positive divergence in the layout was at the SPX lows and market bear trap.
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