Market Journal: The One Chart
The most important chart from a cross-asset market signaling perspective is Investment Grade CDX vs. SPX.
Discussion
At IG CDX 74.52 there was a bullish divergence gap with SPX at 4400, but all other gaps were ursine circa 4200 and below with the lowest being 3929. IG CDX has since blown out to over 80, clearing the path for SPX down to 3929 at best, and probably circa 3800 at worst as long as IG CDX doesn’t rise to over 100 as it did with SPX circa 3500 last October.