SHY/HYG - Daily, Inverted Candles, SPX overlay - Credit spread

2023년 4월 10일

(4/10/2023) Monday - I wanted to publish this chart so we can follow the effect the credit spread had on the S&P 500 (SPX). As you can see the inverted candles correlate well with the SPX. Note the candles are inverted and the SPX is not, just to show better correlation. At the time of publishing there has been a significant move in credit that supports underlying conditions for the S&P 500. This is opposite what the FOMC is trying to accomplish as it causes more inflation.

With CPI coming out this week, Bank earnings start Thursday, and then the FOMC goes into blackout before the next Employment situation report for April. A lot can change. Being the last situation report was on Friday (US Markets closed observing Good Friday and Easter), Im not sure that report has been digested yet either.

On Mondays I post a market video and will include this link among the links to the yield curve inversions, and the IEF/LQD (Financial Conditions), unfolds. We can watch the bar replays. I added links to these charts below also.