The daily JNK v SPX chart here is confirming what I have been expecting. Stocks have been following bond yields higher until the NFP number came out. Yields blasted higher on the NFP number but stocks decouple.
I have been showing that this JNK v SPX correlation is very powerful. I said when JNK breaks back below the 15 day MA stocks should follow down and it looks like it is happening again. As I said the SPX 21 day top cycle is due on the 16th. Lets see how it goes. I am almost certain that stocks will reconnect with JNK again which could be another 10% correction in the S&P. I will show more as this unfolds.
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