Risk Asset Update

From looking at hundreds of charts today, in my opinion there's only 1 thing keeping this market afloat right now and that is the financial sector. I'm not concerned about it, it's just the last piece in the timing puzzle, here's an example of what I mean and why I'm not concerned.

 Here's the 5 min trend of the SPY, I used the SPY for a reason, the S&P-500 has the most exposure to financial stocks of the major averages. Note the overall negative relative divergence as well as today's leading negative divergence. Now look at the same chart for Financials below...

 They are starting to see a leading negative divergence intraday, but its not as strong as everywhere else we look, later in this update you'll see 1 more example of this.

Now, why I'm not worried...

The 15 min chart of Financials, it is not only leading negative, but the worst it has been since June, it's just a matter of time/timing, just like I said yesterday.

Now for Risk Assets...

 Commodities as you can see have not performed well this week, after the 2 Central Bank decisions (actually 3 if you count the BOE), commodities had all hope drained from them.

 HY credit with a positive divergence and the SPX goes up, now a negative divergence.

 The dislocations of Yields and the SPX, you can see right now we are more dislocated than ever, this is why I'm taking this next leg down more serious than before, or at least one reason.

 The Euro intraday is in line with the SPX, this isn't of any consequence, look at the longer term, note how it is similar to yields as well as other charts we have seen with the last two reaction highs in this bear flag really falling apart.

 There it is to the right, the last major dislocation sent the market down for a ride, this one is worse.

 HY Corp. Credit was in line, it has fallen out, this doesn't bother me either as HYC credit has a big ETF with a lot of liquidity and is easy to move in and out of fast unlike High Yield credit.

Energy has fallen out with the SPX

  Here are Financials in sync with the SPX, as mentioned above, this is the other chart.

 Technology has fallen out too, it's just financials now, 1 thread.

Afternoon sector rotation shows financials as leading, Utilities as a safe haven trade are rotating in, Energy and Basic Materials (especially the latter) as a risk on trade are rotating out, Industrials aren't doing anything, Tech is barely doing anything, not is Discretionary.

It's just Financials it seems I need to keep a close eye on.