HYG Update

As I said in the first/second week of October as the market was still making lower lows in to the mid -October low/base, "There's only one reason to accumulate HYG", which is one of numerous reasons we knew a strong upside move was coming.

Along that same logic as we saw HYG distribution earlier in the week, there's only 1 reason and it's not institutional money thinks it and risk assets are going higher (HYG is the institutional equivalent to our 2-3x long leveraged market ETFs).

 HYG accumulation that bother me last week and it's support for the market, then distribution setting in this week with a sharp leading negative divegrence taking it down today significantly.

 This is what the HYG intraday chart looked like Wednesday.

 Increasing HYG distribution in to Wednesday's close...

This is what supported the October rally's start and the last week, when it has failed, the results for the market have been bad, it's in a massive month+ failure and the short term just failed as well, what we call a full house in multiple timeframe analysis.