Wednesday, August 12, 2020

Intraday Update -Credit Acting Up

 As the S&P (+1.3%) tests yesterday's highs, high yield credit is getting ugly again.

SP-500 (2m) and HYG (high yield credit)

Small Caps are at session lows (+0.1%) and Treasury yields, which were hunky-dory earlier, are sliding lower. Also market breadth is notably weaker today than it has been the last 3 days.

The credit signal is not as intense as yesterday afternoon, but it started from a weak place today, and yesterday it happened pretty fast. Volatility has firmed up a little, again not as clearly divergent as yesterday.  In short, the market is getting a bit jittery


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