Leading Indicators Update

This is all intraday only as we are looking for a bounce that we can use as a tactical entry area.

To save time I'm not going to post the charts, but just make this a written update.

Both High Yield Corp. and Junk Credit are performing better than the SPX, this is a risk on posture in the short term.

The $USD and Euro seem to have very little to do with this, if anything the Japanese Yen intraday has the closest correlation to the market, I'm not convinced its the Yen moving sentiment, but it is in the proper correlation. The Aussie is in line, but it's not leading the market.

Yields aren't leading the market either, they are in line to slightly underperforming the correlation.

Basically the only thing standing out is a risk on posture in Credit and the instruments of choice are the most discounted, HY Corp and Junk.

CONTEXT is even out of line with ES rich vs the CONTEXT model...

So what is driving the market at this moment or at least seemingly changing sentiment toward that oversold bounce we talked about last night?

It seems to be Wall Street driving underlying trade as we saw in futures and the averages. From my point of view, that is the best because it means there's no underlying strength behind the sentiment, it's just market manipulation as they seem to be looking to do the same thing we are looking to do.

There still needs to be a process to a reversal in my view, not a "V" shaped move. Also volatility is high and they'll likely keep it high so any move to the upside is likely to be impressive, although hollow, this "may" make it worthwhile to play a very short term move on the upside with one of the averages, I have certain standards that have to be met and they aren't yet so I'd rather miss the move up than take a sub-par trade, that doesn't mean those standards won't be met, they may very well be met before the close.

I'd probably expect some more market chop laterally which may mean a move toward the lows of the day, but as long as 3C keeps moving higher, we are in good shape and thus far it is.

What we are looking at right now is pure short term manipulation, but that' fine with me, whatever it takes to get the job done.