Leading Indicators...

We really could not ask more from our forecast for this week from last Friday, 3C has done what it should, HYG has done what it should, breadth is doing what it should and now leading indicators are doing what they should.

Taken altogether and shorting in to higher prices on this move is the answer all of these clues put out, which is what was expected to begin with.

 HYG v SPX intraday, this is what we expected, HYG to lead the market. We still have some upside room so I'm not calling this yet, but everything is moving in the right direction and I'm very comfortable that I have the bulk of my short positions filled out here and am very comfortable adding to them as they pop up.

 The new SPX/R2K ratio for confirmation is NOT confirming this move as you can see with severe weakness in the R2K, which should not be surprising with 40% on the Index in a technical ear market.

 Interestingly, Pro Sentiment which looked a bit better for an upside move today, is NOT confirming at all. Pro sentiment is going the opposite way.

The expected move to yields mentioned last night has been nearly on the nose.

And HY Credit is not buying this move...