So much for follow through on the SPX, it just took out most of the hours of work it put in to yesterday's gains and it looks like the heavy Financial representation on the index had something to do with it.
I'm very tempted to add a tiny bit, 15% or so to max FAZ's position size, but I don't want to act until BABA is out as it looks that HYG is there to support BABA's IPO, although I'm not sure for how long as those $8 bn in shares not under lock-up can be sold today.
On the open and on some significant volume, the SPY took out nearly 4 and a half hours of hanging in there and pumping at the late afternoon with a VIX smackdown and some other support, it sure doesn't take long to take it back.
The SPY negative divegrence is progressing as you'd expect from a normal market which is interesting as with everything going on this week, it's pretty far from normal.
And the main divegrence on the week for the SPY, this 5 min which was the early gas in the tank, again is on a normal track of distribution for the size and time.
Financials also looked a little odd this morning on the open and with a little deeper divergence
And the XLF 5 min chart, leading negative, as usual, through those flat, quiet ranges like yesterday afternoon.
This however is the one thing that has me sitting on my hands for the moment
HYG, it's divergence continues and needs to be put in perspective, but it's the price that triggers algos and is still up this morning, along the lines of what I posted yesterday, support for the BABA IPO with those $8 bn in non-locked insider shares, unusual to say the least.
Putting the same divergence in context, here's the trend in HYG, it's obviously a bump in the road and nothing more, but it's timing with needed BABA support, especially if anyone intends on cashing in those shares, is uncanny to say the least.
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