Leading Indicators.

Short and sweet...

 When commodities are acting this well vs the SPX, something is up, considering the stop level in the SPX talked about first thing after the close yesterday, I almost stopped when I saw this chart as it pretty much provided the answer I suspected.

 High Yield Credit didn't make a new low today, instead made a higher low...

 High Yield Corp. Credit (this is really the important one) is still in leading positive position, plus it held and didn't follow the SPX, in fact it's pretty far from its intraday low.

 High Yield Junk is acting almost exactly the same as HYG above.

 This also raised my eyebrows, although I expected to see it with the theory I had, it's still pretty wild to
see the SPX making a move like that with Yields rising (this is positive for the market as a leading indicator).

 The Euro, as bad as it was acting is still acting better than the SPX, so it too is supportive and makes the SPY move look like the stop run discussed yesterday.

 The $USD should be higher at the SPX lower low, it's not as the $USDX divergence suggested, the $USD would halt. The divergence is now negative so it looks like the $USD will head down (market supportive), but only after the SPY took out that level.

Not surprisingly, the Euro is also going positive at the same time (market positive). Both currencies basically made the small move they needed to made to push the SPX to 6.5 week lows.

 TLT(Treasuries-flight to safety trade) should be at new highs here, but as you saw with yields, it's no surprise that it's not.

And after seeing all of that, I had an idea what I would see next....

 The CONTEXT ES model is moving up and now @ over a 16 point positive differential over ES.

SPY Arb is moving up as well, but that was a given after seeing TLT.