As noted in the last post over weekend, we got the predicted green up Monday with an 18+ point rally in S&P to 2724 right into the close. There is negative divergence in hourly timeframe. But more important than technicals (these have limited accurate predictive capability for future), hourly cycles are about to turn down. Expect to see some pullback or weakness - upside is limited for next few days.
High yield grade (HYG) bond index made a new high today exceeding high from 2018. Investors seem to be embracing risk on all cylinders!
 |
| S&P Futures Four Hourly - 02/04/2019 |
 |
| HYG Weekly - 02/04/2019 |