Leading Indicators

We're in the zone now for the SPY, DIA and QQQ, only the SPY has really triggered any volume yet which is also an important part of a head fake reversal, the stops need to be hit and the shorts need to move in, volume surges are a good indication of that.

As far as leading indicators go, almost all are holding up well.

 Yields popped this a.m. to put them at a large near term positive divergence, they are already at a large positive divergence for the reversal area of the entire range and have been.

 The AUD intraday is not quite as bad as the SPX, over the last day and a half it also has popped huge in the near term, it is also already in a larger timeframe positive divergence as well.

 HY Credit was positive yesterday and is positive today, this week is the first time HY credit has broken away from an in line relationship with the SPX.

 HYG Credit is also holding up better, still in the green and also hugely positive in the longer term as well like the others. Both the longer term for the entire range is positive and the near term local divergences are positive in leading indicators.

The move down this morning though is pretty complete in many groups and stocks.

Sector rotation makes that obvious.