Market Update

Again, as was pointed out last night in the last post, "Market Update-Futures-AAPL" Context's SPY Arbitrage model was positive all day, this is what it looked like in last night's post (yesterday's model)

 This is yesterday's SPY arbitrage model and one of many reasons I posted this yesterday...

"I've just gone through a boatload of charts and while there is serious damage done to the market structure, this appears to be nothing more than a short term consolidation/pullback." (Click link to see yesterday's post)

So far this morning (even though the model is delayed by 30+ mins., we do see a positive arbitrage SPY model again today as suspected with a +$.40 differential as of 9:35 a.m.

Again from last night's post, "Risk assets such as HYG, JNK and DHY all had a stronger close than the SPX, "

HYG, TLT and to a lesser degree, VXX all closed better than the SPX, hinting at arbitrage assets being used yesterday.

Despite the weaker Euro and stronger $USD today...

 Euro vs SPX not supportive...

 USD vs SPX also not supportive, yet the market is higher.

$AUD, after last night's RBA decision to leave the cash rate at 3%, the $AUD is in line and supportive of the SPX. More on the RBA decision which was covered last night here.

So far among the market averages we have a small intraday 1-2 min negative in the SPY, that should lead to a correction/pullback, the DIA is holding up pretty well, the Q's have a slight intraday negative divergence, should lead to a price pullback intraday and yesterday's worst performer, the IWM which I mentioned last night had the most bullish P/V dominant relationship among its component stocks is in line intraday.