Leading Indicators Agree

It's really a great feeling to have an expectation of what to expect based on charts/objective data and concepts/experience of probabilities as well as having some idea of why the market needs to do certain things, there's very little that is random and very little that isn't already discounted.

So what started as an idea somewhere around the 3rd week of August is now seemingly being fulfilled. The expectations that I have laid out as clearly as I can in post and videos are now taking shape and the best part is, all of it benefits our ability to set up our chess board for the trending trades that I think many people would prefer over these hit and run, highly leveraged trades among insane volatility.

I don't need charts for Leading Indicators, they are exactly what I'd want to see and more.

First VXX is underperforming the SPX, TLT is in line and HYG is outperforming the SPX, so TLT is neutral in the SPY Arbitrage and both HYG and VXX are supportive of the SPY Arbitrage which is really short term manipulation because the market won't do it on its own unless they can get price past an area where traders are interested in buying.

The SPY Arb is now positive $.80 meaning the model suggests the SPY should be $.80 higher right now based on HYG and VXX's current position. This fits perfectly with the currency pairs mentioned earlier.

Speaking of currencies... The $AUD vs the SPX put in a higher low and thus positive divergence at 2:20 today as 3C predicted earlier today, it also predicted the Euro see strength short term and the Euro is even a better leading positive signal vs. the SPX. The tricky one that fills out details is the Yen, it has been range bound and we often see that before a reversal so as 3C suggested, the highs that are range bound in FXY (Yen) look like they will come down as 3C suggests, you probably remember what happens after that and why this is looking like a short (term) operation.

Sentiment Indicators are fairly negative, especially HIO, but in to late afternoon trade I see FCT improving.

High Yield Credit (again as another indication of the short term (I'm thinking day/days-not week or weeks) is range bound trading sideways, but vs the SPX, that is a positive correlation. The more important one is the dislocation of HY credit from the SPY over weeks.

I think we are right on track, I'm hesitant to trade this move because it has a high chance of turning on a dime, that reversal confirmation candle can gap up strongly in the a.m. and close significantly lower by the end of the day and the Tweezer top is confirmed.

So unless I see signals that really are worth it, I'll probably spend more of my time looking for the best core position set ups as this is the market gift pinnacle.