Futures, Market and HYG Update

For those who missed the posts on HYG or didn't understand, I wish I had time to link to them or repost them now, but I don't. Actually, it's important...the original from yesterday.

Here's today's recap of yesterday's...


The idea was HG was under short term accumulation, not the kind that tells us institutional money is moving in, the kind that tells us HYG will be used as a lever to lift the market-which were nearly my exact words yesterday. What we have been seeing since Wednesday night are positive divergences that are of a certain size and the asset moves up as the divergence suggests, but then gets sold on initial strength long before it should be.

What I expected was for this to happen to HYG as well, thus far it has, this tells us the Hedge Fund herd has broken up and are selling wherever they can, I use AAPL as an example because the same thing happened there.

First HYG (High Yield Corp. Credit), a very liquid risk asset/Credit

 HYG which has been under accumulation for a couple of days, this was the spark for the market as expected, as posted yesterday, you can see it is falling off, but has similar relative performance to the market.

If the market were to lose a gain like today's either today or tomorrow, it would not bode well in the minds of longs, this is why what happens to HYG is important.

HYG this morning intraday 1 min

HYG this a.m. 2 min intraday

This is a larger accumulation period for HYG, it should have held a significantly higher move, my thought was HYG would be cut short and sold early as we have been seeing in FX, equity, credit and elsewhere since Wednesday night. Thus far, although still early, that seems to be what it happening.

Index Futures Intraday

 ES

NQ and note the leading negative in the flat range in NASDAQ 100 futures

TF

Averages...

 DIA intraday

IWM intraday

QQQ intraday

SPY intraday...

I'm trying to divide my time between watching for the signals expected and watching for opportunities or anything unusual.