Update

While watching the futures 1 and 5 min charts, the 5 min charts have been nearly infallible for making double digit 1-day gains for 3 weeks now with a trade about every 3 days or so, right down to the best index to play and of course whether to use puts or calls (short or long), today's gain in about 2 hours of trade well over +25%. In any case that continues to be of interest as NQ/NASDAQ futures predictably lose bullish momentum as the trade yesterday envisioned selling the calls near the open which we did.

While watching this and other things, I have remained curious about the divergence in High Yield Corporate credit which is extremely bearish as for price's dislocation with the SPX, but short term bullish with a 15 min positive divergence, one I have suspected was part of a short shakeout, so far today the information continues to support that idea, rather than leveraging up credit.

The other interesting asset is the Yen, I put together a graphic for you there.

First HYG...

 This is the bearish dislocation (bearish for the market) between High Yield Corp. Credit and the SPX, "Credit leads, stocks follow", that's some very negative leading, but the 15 min 3C positive divergence I have been talking about for at least a week has come in to play, sending HYG higher, in what I suspect is a short shakeout.

 The first move yesterday showed almost instant distribution in to higher prices, that continues today, but we want to se the negative divergence migrate to longer term 3C charts to confirm.

 The 3 min chart also shows a last minute inventory stock-piling just before the move, likely middle men front-running the move and then distribution right in to higher prices.

 The longer term 10 min chart is still showing the very positive divergence I have been talking about, but even here since the move started we see distribution in to higher prices. So far, so good for the Credit/Equity dislocation signal.

Currencies...

 This is a 1 min intraday of the SPX (green) vs the $USD, they have a nearly perfect inverse correlation so they are trading exactly as they should be.

 This is the 1 min chart of the Euro vs the SPX, they have a positive correlation and are trading nearly perfectly according to the correlation, note the Euro is leading moves in the SPX, so you can use the Euro's early intraday reversals to predict the SPX's intraday reversals.

Finally and most importantly, the Yen in ornage on a 30 min chart vs the SPX in green, I added a percentage Rate of Change to the Yen in the turquoise Histogram, this is the ROC of the Yen, note the flat area in the yen, this is the area of interest as it could have dramatic effects on everything from the carry to the market and Japan is worried about it; just today the Japanese told the nations 5 biggest oil refineries to cut production by 20%, it seems the pause in the Yen has them concerned and they are willing to absorb higher input costs to move in to a short term inflationary cycle, hopeful to stop the deflationary curse. 

The Histogram makes very clear the fear of carry traders worldwide, hedge funds among the largest of them, every pip the Yen moves up is worth 10-200 pips of lost profit or even straight losses.