Leading Indicators

I'm actually going to have to head out about 3:40 to get a blood draw (FUN) as the lab closes at 4 and I'll be back right after 4 pm to pick up from there.

I am looking at leading indicators and we are still seeing movement along the lines of the theory put forth last night, if you haven't read it, here it is.

We want to see credit deteriorate and any other indications are a bonus.

High Yield Corporate which was positive yesterday continues to deteriorate today, as I mentioned, think of Credit like a road map for the market a bit in advance. In fact HYG is at a 0.01% gain, nearly flat on the day so that's what we are looking for and it's a good start.

Junk Credit is holding up a bit better, but not moving up as it was yesterday, for the most part, since its gap up this a.m. it has been in a consolidation triangle, it would be interesting if that broke to the downside as it would throw some credit traders out of the trade.

High Yield Credit is also in that same triangle, but down pretty hard on the day.

Yields remain supportive of our theory as well. Currencies are a bit tougher, especially the $AUD as they just took rate action, I believe a cut from their Central bank as well as digesting Chinese Services PMI, so $AUD is pretty volatile and probably not too trustworthy for our needs right now.

We'll see how they look after the close.

I see the Q's are making that move to the upside we just saw on the intraday charts.