This graph aggregate HYG+LQD+JNK and divides by 3 for an average. It then creates a linear regression channel. It also shows some correlation coefficients to OIL, US10Y treasuries, and the Chicago Fed's National Financial Conditions Index. In short, it is about to break the lower bound and it looks like the recovery, even with the Fed's help, is incredibly shaky.
Credit spreads are bouncing off trendline and spx is breaking trendline. Charts are turning bearish and we may be in for a meaningful correction.
'll post detailed charts this weekend on my blog as it is much easier for me: chartsonmac.wordpress.com.
Just wanted to share.