I'm looking at a few different timeframes in this update, but most of our trend assumptions seem to have some degree of confirmation here, from the very short intraday to the long term Primary Trend.
Commodities are holding up better again today than the SPX, we saw this trend last week and recently, its almost as if there's some good news expected out of China, I believe their Flash PMI is due out this week.
High yield Credit moved down before the gap down and has been moving up in to the drop, this is interesting and suggestive of some more upside.
High Yield Corporate Credit dropped, but not as much as the SPX and remains supportive or higher prices.
As for the longer term and the sub-intermediate up trend I have expected, it looks like HY corp. credit remains supportive of a move higher (this is the move higher we talked about after a pullback).
Yields are very low in the near term, this leaves me wondering if we don't have some more aggressive downside to go, we hit the original expected target in 1 day so I'm wondering if this is signaling more to come.
Long term Primary Trend, you can see Yields have been very negatively divergence, this would suggest a nasty fall for the long term Primary trend.
The $AUD also wasn't as bad today as you might expect, it looks like some near term upside is probable.
Again as to how far a pullback may go, the Euro is still a good distance lower than the SPX, again this makes me wonder exactly how much downside a pullback might see.
Energy is generally supportive of the SPX
Financials are starting to show more life
Tech overall seems to look the best for intraday trade.
Sector rotation vs Friday shows Financials looking pretty good, the safe haven trades are fading while Energy, Industrials, Tech and maybe even Basic Materials are starting to see some rotation.
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