Market Update

The market is trying to put together an intraday bounce based on Dow 17k "perceived " support and an intraday oversold condition in the IWM.

Really there's nothing too special or exciting here, none of the averages other than the IWM/TF are even showing a positive divergence intraday and Dow is just trying to hold 17k as support as you'd expect on the first test of the area.

Personally I'd use any intraday bounce to my advantage tactically to enter positions I may be interested in on the short side that are already well positioned, Financials may be added to that list momentarily, although I have liked FAZ for a bit now.

The Most Shorted Index looks like this.

 MSI (red) v. SPY


Russell 2000 futures do have an intraday positive divegrence 1 min

As does the IWM, but the other averages look like the SPY.

SPY in line

And of course the Dow 17k is a psychological level so initial support at the area is not surprising at all.

High Yield Credit keeps selling off

Here's a closer look specifically at HYG vs SPY the last 2-days.

The market clearly took a risk-off tone last week, especially Friday in risk assets.

Treasuries continues to rise as they were last Friday, one of several things that stood out.