While the SPY is making the run for a Crazy Ivan (years ago we'd rarely ever see anything like this in Technical trading), I checked out Leading Indicators quickly. While SPY Arbitrage isn't being used, HYG is as it has been for some time..
Other than that, there are a few interesting Leading Indications specific to this week, which is also to say, specific to the sym. SPX triangle.
Here we have short term VIX futures in blue vs the SPX in green, since they trade opposite each other I've inverted the SPX's price so the correlation between the two which would normally be almost exact, can be seen. There's a clear bid for protection in VXX / VIX futures .
I've left the SPX prices inverted to compare to TLT which also traded opposite the SPX and is considered a flight to safety trade, it is outperforming the correlation with the SPX today, but more importantly as you remember the 60 min 3C charts...
Also on a much larger scale with much of that being this week specifically. Why would a risk on market see such a flight to safety?
Sentiment has flopped back and forth, but there seems to be a clear trend emerging, again specific to this week vs the SPX.
And Yields, the equity magnet as you can see to the left are dislocated intraday, but keeping in mind the 60 min charts...
Yields have called every move on this chart from down to up to the worst leading negative dislocation right now calling for the SPX to move down.
Now that we have some movement in the market and a couple of hours left, I'm going to take a look at the near term and opportunities.
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