Opening Indications

After yesterday's F_O_M_C  red herring of leaving the "Considerable time" language which was clearly for no reason once you listened to Yellen try to explain away the time factor as really not time, but data dependency, it seems clear the language was left to keep the market looking in the direction it had been looking for the last two weeks in fear of the language being removed, the reason of course were the blasted dots.

Both the 2015 and 2016 median F_E_D Funds rate went up again for the two years signaling a more aggressive or hawkish F_E_D, but it seems the red herring didn't do what it was intended to do as the market gave back all of the skimpy knee jerk gains before the close which is one of the fastest F_E_D knee jerk turn-arounds I've ever seen.

It also seems clear that HYG was accumulated and prepped ahead of time for the very concept we have been expecting for weeks and specifically for a pop this week in CONJUNCTION wit expected F_E_D knee jerk support.

That would be the simple concept of a head fake move on a large reversal pattern, more commonly described and drawn numerous times over the last few weeks as an Igloo w/ Chimney top like this...

The drawing or concept has not changed once in weeks of drawing the exact same as far as forward expectations which are the reversal concepts head fake move.

Looking over the watchlist, Set-up plays, most all of them NEED this move, which is why I suspect it's there in the first place as we have suspected for weeks.

HYG is still in control of the market for the moment, although it's clearly lost some of that influence since yesterday afternoon after the DF_E_D gains were dumped right back to unchanged, this is the flat behavior HYG's starting to display after 2.5 days of being locked tick for tick with the SPX.

This morning HYG hasn't moved down yet, but has lost influence over the SPX which I suspect means the averages only have the Monday/Tuesday (part of Tuesday) positive divegrence as gas in the tank which is already running dry.

The key from a market perspective is the market averages' divergences and HYG's as it should lead to the downside. From a "What's the best use of all of this perspective", it's the divergences in the watchlist assets that have been triggering alerts, which I plan to spend most of my time combing through those today while making sure the averages and HYG are moving in the forecasted direction, we haven't been off on this as of yet, probabilities continue to suggest we're still on the right tack so we'll be looking for deterioration in those assets.