Overall they're not looking as bad as I expected after seeing CONTEXT.
Commodities are performing well today, despite some pressure from the $USD intraday (ONLY).
Take a look at GLD, we closed our GLD puts yesterday on a 3C signal, that makes something like the 3rd or 4th successful GLD trade in a row for 30-nearlt 50% gains in 1 -3 days.
High Yield Credit seems a little off today vs the SPX.
Longer term, for a while HY credit looked like it was sending us a signal that the party was over, but it shaped up and is pretty much in line with the SPX now.
HY Corp. Credit is lagging a little today vs the SPX, it's not the kind of divergence I would trade, but there's a slight bit of underperformance there. You may recall that HYC Credit was quite supportive of the market yesterday as can be seen in the white box, that's the kind of divergence that's worth paying attention to.
Longer term HYC credit is still in good position and supportive of the market, even though on it's daily trend, it is quite extended above its downtrend channel.
Yields are a bit weak today.
Longer term they are close to in line, but you can see today's weakness.
The $AUD is holding up well today.
Longer term $AUD is still supportive of the market.
The Euro intraday is obviously a bit weaker than the market, I think we are seeing some short covering and stops being hit in a number of trades we identified as being bear traps.
Longer term the SPX is a bit more excited here than the Euro, however the picture was a lot worse at the start of the week.
Sectors, nothing surprising here, all of the defensive sectors are off, Industrials, Energy and Basic Materials are still outperforming on a momentum basis as they were yesterday, Tech is finally picking up a bit and Financials are leaking off a little as the day wears on.
All in all I think the trend that we are looking for and the probability of a short squeeze still look good, there's no major damage here, at least nothing that we haven't already seen looking a lot worse.
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