Leading Indicators

There are some very interesting indications here, for one it looks like they're going to try an EOD ramp using HYG and VXX, TLT likely will not cooperate, but that's 2 of 3 of the SPY Arbitrage lever (short term or intraday market manipulation) and the bigger message is just as I suspected with the market averages, Index Futures and VXX.

 This is HYG, the lever as I posted earlier this week is broken and you can see that clearly in price, High Yield Credit tends to lead the market and this chart is suggesting it will be leading the market lower shortly.

As far as EOD manipulation, this is VXX with the SPX's price inverted so you can see the correlation which was near perfect until just recently as VXX is underperforming which is what you see when they try to activate intraday manipulation using the SPY Arbitrage, but they need HYG as well.

This is HYG on an intraday basis and SPX scaled normally, there's some out-performance there, so it looks like they'll try to ramp the close, but the HYG chart above is a much stronger signal or indication, this is just EOD intraday stuff.

 TLT needs to move down to help the SPY Arbitrage, not sure that will happen, but this chart of TLT with its correlation to the SPX which has price inverted to show what the normal correlation should be, shows a clear flight to safety in Treasuries.

 And on the sentiment side of things (professional, not Stocktwits), they are clearly getting out of town, expecting something ugly coming which is right in line with our charts.