HYG (CREDIT) IMPROVEMENT

You may recall early when bounce indications were coming in two things bothered me, the 15 min positives in averages like the SPY/SPX that were very sharp and didn't have any real estate (price base) below the divergence to support such a divergence of that size, that filled in yesterday.

The second was the literal "V" turn in HYG to the upside, HYG Credit is a risk on asset and supports the market or a market move higher, in fact HYG often leads the market in moving first. The problem was the "V" nature of the reversal, there's just no time to accumulate a position in such a reversal, that's why there's a reversal process rather than a reversal event.

As of today, HYG has spent some time building a platform and has seen improving positive divergences, now with something under them to support them.

 HYG 15 min chart with a reversal event in the shape of a "V" at "B" and large volume just before HYG bottomed, almost like short term downside capitulation at "A"

HYG 2 min intraday  shows no support for the initial turn higher on this chart, but some built in yesterday after the F_O_M_C minutes out in an intraday low and at the closing lows, today it has stayed at least in line if not leading a little.

 The 10 min chart tells the story best, no accumulation on the "V" reversal, some has built up though since HYG has based laterally for a bit.

The 15 min chart is almost perfectly in line.

All in all, this is an improvement for HYG and its ability to support market upside. Who knows what happens when the NASDAQ reopens.

Does anyone find the horrible QQQ 3C charts over the last week vs the stellar SPY charts to be interesting given this shut down of the NASDAQ today?