Looking Ahead

There are too many charts to post in too little time to make the case I'm going to make right now, but this is based on leading indicators, HY Credit, HYG specifically, some assets like NFLX, AAPL and many others on the watchlist and last the averages themselves.

The damage is now done and pretty significant in any of the above assets, however in HYG's case, while it has been in a reversal process for about 8 days and is leading the market the same way, very short term intraday it leads the market by a little, about the same amount that I see on SPY intraday 2 hour or so positive divergences as well as watchlist assets like NFLX.

I think we'll see more lateral chop with today chopping down and tomorrow likely chopping up, however as mentioned, the deteriorating is now in the red zone, so these are the kinds of bounces and timing we want to short in to. Being we have a 3-day weekend and Options expiration (2weekly) Friday, I'd say we'll likely set up trades between now and then and likely see the pivot next week, based on what I see now. I'd normally guess Tuesday when the market re-opens but we have the ECB meeting September 4th in the middle of the week which may cause the market to hang in the area until they see what Draghi does.

I have a feeling the next day or two will be very busy for us. This is the first pivot for new positions since early August, this is pivot #2 as it was displayed on my bounce / target chart/map.