Quick Market Update including Volatility

I'll have a lot more to look at like currencies and leading indicators, but just as we were able to predict the SPY Arbitrage based on action in HYG earlier this morning, we can start to see damage occurring to those assets that are creating a positive SPY Arb.

I showed yesterday that HYG, one of the main assets / Levers, was sold in to the close and helped as long as it could with an afternoon ramp, but someone wasn't willing to hold that risk overnight and I suspected the same thing would happen today.

 Right now as this is 30 mins delayed, there's a +$.70 SPY Arb, we've moved about $.61 off the morning lows when the Arb kicked in.

I suspect in an hour, this Arb chart will be headed negative.

 HYG for now on the 1 min chart has gone negative, price has started to follow, I want to make sure no reinforcements are added at lower prices in HYG to form a slightly larger base than just this morning's.

This is the VIX "Buy" signal from my Custom "DeMark-inspired" indicator, basically buy/sell or short/cover.

You can see the last two VIX buy signals, one was very recent.

The signals are definitely working, the first one took a bit longer, but there were some downside ones in the past that were between the next day and a week or so. The Bollinger Bands are starting to pinch as well.

Remember the actual VIX Futures? Here's the 30 min chart I have shown the last several days with not only a beautiful price-action reversal pattern, but a leading positive divergence.

 There's been no head fake move, here, but I don't think this is the kind of asset as susceptible to that, this is demand for protection sending the futures higher.

Here's the 5 min chart so you can see, the VIX Futures had the larger picture in place and the short term 5 min came in to place and it's starting to fire to the upside.

This will influence the VXX which IS an arb. asset.

 The 1 min VXX had an earlier small negative on the 1 min, but more like a pullback than distribution and now we just came off another positive.

The 2 min looks good here as well, this is where HYG was a dead giveaway yesterday that it wouldn't hold in to the close.

Treasuries have a 1 min negative, it's intraday, but it "could" send them lower and help the arb, if they head higher though, I'd suspect there's some element of a flight to safety or rotation.

The 2 min chart is fine.

Thus far it looks like the SPY Arb that started this morning, is starting to collapse and that's where any market strength at all has been coming from.