HYG / JUNK Chart Updates

This is one of the main things I've been waiting for within the intraday timeframes, Junk credit which trades nearly indistinguishable from HYG (price), but is not an arbitrage asset so has no real manipulative value, has been showing signs of distribution much earlier, I feel HYG has been held together on intraday charts as a function of SPY arbitrage (as we saw the market needed it Wednesday (over $1 differential for a flat SPX close). I believe Credit will lead a downside move or put a different way, have better/ earlier relative performance.

 HYG 1 min intraday saw a very small positive 1 min divergence at the same time I mentioned the market averages were showing an intraday positive. As far as that intraday positive for the averages, to me it hasn't really performed to expectations, perhaps that's just as of yet, but remember it is a 1 min divergence, the damage done to 2, 3 and 5 min intraday (some 10 min intraday) is the real story for me rather than an intraday divergence on a 1 min chart.

HYG 3 min is some of that damage I'm talking about.

HYG 10 min is a rather large move for intraday, this is in the institutional timeframe

Even a 15 min intraday leading negative divergence, it seems there's been quite a bit of strong underlying activity in HYG today.

REMEMBER THAT THE POINT OF LAST NIGHT'S POST WAS THE VERY SUDDEN DECISION TO ABANDON A FX TRADE THAT HAD BEEN ACCUMULATED FOR NEARLY 6 WEEKS, MUCH OF THE NEGATIVE DAMAGE HAPPENING IN THE LAST 2-DAYS ALONE, THIS IS THE AUD/JPY AND IT HAS BEEN (AS SEEN IN LAST NIGHT'S POST) CONNECTED AT THE HIP WITH THE SPX.

Something seems to have happened around Tuesday morning that changed minds and it's not an insignificant change.

 JNK-Junk credit that trades like HYG has shown 3C weakness earlier in the week, it has no arbitrage value so there would be no short term ulterior motive to support it.

JNK 15 min

DHY is lower volume, significantly lower so intraday charts are choppy, but the 10 min above is one of the first timeframes where trends are more visible, it seems here too there's been negative underlying sentiment.

"Credit leads, stocks follow"