Floating Along for Now

While much of the focus today is on the Square IPO, with SQ flat as a pancake after an opening move higher, and the KBIO drama we looked at in my last blog post, the high yield corporate and junk bond markets continue to flash disturbing signs of weakness. 

On the updated HYG daily chart, below, high yield corporates could easily be headed for another wipeout in an ongoing strong downtrend, which makes sense when coupled with the intense CHK weakness. 

While that is playing out, equities at-large do not seem overly-concerned today. NFLX is fading from overbought conditions, short-term, but the selling is subdued, to say the least. And several Members have been enjoying the upside in PACB, a perennial watchlist long idea of ours for a while now.

Still, the weakness below the surface in certain parts of the market is likely holding the broad market back from the new highs which many have opined this week seems like a forgone conclusion. 

See you after the bell for my video market recap.