Leading Indicators

It's really early to be looking at leading indicators, but with my suspicion of how the market will behave in to a reversal, I'm not neglecting anything that could provide that glimpse.

So far there's not any big changes, but Leading Indicators are turning like 3C did, slowly at first and then picking up momentum.

Here's a look at a few (and there's some element of the market moving with the $USD again or pretty close like yesterday, indicative of manipulation of the averages).

This is what initially caught my attention.

VXX with an unusually large leading positive spike

 As for Leading Indicators, Yields are definitely the best looking (within the context of what we are looking for-underlying market weakness); this is without doubt the largest divergence with the SPX and it added a little more so far today.

 High Yield Credit was the first to break, at first slow, but it's picking up downside momentum vs the SPX.

 This is a longer view, finally HY Credit is starting to show a divergence that is more than just intraday.

 As suspected, HY would lead and bleed in to HY Corp, that started yesterday with the afternoon plunge, the failure to get back in line at the close and this morning a near mirror opposite divergence so far.

Junk Credit is acting the same way. We'll really see where they stand later this afternoon, but when the SPX diverges with other risk assets, that's a set up for a pretty decent reversal. We only had 2 good ones last year, maybe a 3rd smaller one. This I suspect will be a good one.