I suspect we know what the HYG divergence is all about after seeing the closing action in which VIX futures were monkey hammered in an attempt to ramp the market and SPX is particular, however it failed, which tells us something about the shape of the market being their trying to move HYG, resorting to a VIX slam at the close when HYG won't move and STILL FAILED...
VXX/ VIX Short Term Futures (red) are monkey hammered in to the close, making a new low on the day. The SPX (green) "should" have seen a new high on the day, but failed to respond to the VIX Whack-a-mole. The same is true for all of the other major averages, none made a new intraday high on the VIX slam which smacks of desperation. Why?
The 100 day (yellow) and 50-day (blue) moving averages are tight there, less than a point above for the 100-day SPX.
The daily closing candle for the SPX ends up being a bearish Harami or "Inside Day", inside Friday and otherwise, a Doji star , also a bearish closing daily candle here.
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