If you follow my blog you will know how important it is to follow bonds. They are the early warning of trouble. The smart money moves into the safety bonds while the dumb money moves into stocks right at the peak. We won't know if the U.S. stock market has topped out until we get a confirmed indication on the weekly chart. It will be a lower weekly high followed by a lower weekly low. We don't have that yet.
The SPX/JNK chart here is showing the JNK candles are back below the 15 day MA. The MACD has not crossed down yet. It could well cross down in the next week if things unravel. We are getting quite a few shocks to the system already this year and I feel that this is just the beginning.
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