Market Journal: Risk-Off Builds

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Discussion

That didn’t take long. Following Friday’s seemingly bullish SPX close into a long weekend, risk-off signals are percolating this morning in a rather pervasive manner. As I type at 9:35am EST, VOL is up materially, IG CDX has moved decisively above levels of last week that saw SPY down around $555, oil is down almost -4%, BTC continues to trade limp, and defensive equity sectors are bid. Frankly, even I’m surprised at this morning’s action, as I thought there would be at least some follow-through to the upside early this week.