HYG Update

This is the High Yield Corporate Credit Bond ETF that I was worried about yesterday, it's one of the most liquid HY assets available and thus is most often used for short term market manipulation, as I said this morning, I'm going to be paying a lot more attention to things that "Bother me" like HYG did yesterday as it's clear the Central Banks are in the game with Wall Street, thus following the money and taking even a 1-day divergence in HYG seriously is of great importance, even if I wouldn't trade it, just to know now that there's that much inside information flowing from central banks, again, making watching the money most important as that's what moves the market.

HYG however is not the best overall indication of where credit is, that belongs To BofA/Merrill Lynch's US High Yield Master II Index- a bit harder to come by for 3C analysis, but not short term manipulated like HYG.

 This is the SPY vs HYG, look at the correlation intraday the past few days, it's not always like this, in fact it's quite the opposite macro trend and right on top of us.

HYG vs SPX trend, note the pivot stage 3 tops vs HYG and for confirmation...

PIMCO's HY Index...

SPY vs PIMCO's HY Index.

HYG intraday distribution 1 min'

The area/accumulation I was worried about 1 min and an obvious large relative divergence

On a 10 min, the positive in to the dip area bothered me a lot yesterday, but it started distributing yesterday, keep in mind these are very big positions as it is a VERY fluid asset, I suspect they started taking gains yesterday as they already had a profit from the 19th's lows, today on a 10 min chart leading negative like that, I'm pretty sure HYG is done.