The HYG peak to trough is drawn first, then the SPY box is drawn.
Note how this drop in HYG doesn't have much of a corresponding drop in SPY.
This spells trouble. Get short when breaking under previous day's lows.
Tim 4:07PM EST 9/11/2014 """""
Comments
tompower2
⋅
Okay u r using this as a leading indicator. so you should see a bigger drop as result of this because the first one broke harder
broken87
⋅
I am not quite sure how you are measuring the kind of drop you expect to see in the SPY based on the HYG?? Could you at least tell us where you expect the SPY to go based on the action in HYG?? Thank you sir in advance
Will_Wong
⋅
It seems to me from the above charts that there was no exact correlation of the SPY drop to the HYG drop. The point is that there was always a drop in SPY (size varies) during the same time period when there was a drop in HYG, except in the last drop in HYG. This is what I am reading.
timwest
⋅
I show that HYG drops and the SPY follows. If HYG is dropping hard, you better watch out in SPY.