Market Update/Leading Indicators

DO I love this market today? Do I feel strongly that is has added to the positive divergences from yesterday? No. I actually am pretty disappointed we didn't get a stronger pullback/consolidation to briefly send prices higher to short in to.

There was some confusion apparently among the algo's today that sent the Euro lower, it had to do with conversion rates of Spanish Yields. When Citi Analysts asked the Question, "Why did the Euro fall overnight?", they came back with a glitch

So why did the Euro fall? The best answer seems to be that the 10yr Spanish benchmark has changed from 5.85% Jan 2022 to the 4.8% Jan 24. As a result some systems been showing the wrong Bund/Bono spread and players spooked when the "old" spread moved out by more than 30bps. 

There's also AA earnings tonight, the market has good reason to be nervous about earnings at these multiples.

In any case, the forward looking indicators...

 Commodity divergences with the SPX tend to lead the market

 As do divergences with High Yield Credit, positive vs the SPX.

The $AUD is also an excellent leading indicator as seen above, it's also positive in here, but this isn't an easy case to make.

AA will probably have more to do with the market than any indicator out there.