About That Exit Signal

The high yield spread chart I follow is still below 5.50, but this is worth keeping an eye on right now. HYG did not make a new high. HYG moves in near lockstep wiht high-yield spreads in the short-term. A drop of more than 2 percent from Monday's close would likely trigger a new sell signal. On the flip side, the high-yield spreads have formed a right-triangle. A collapse in spreads is also in the cars (very bullish for stocks).

For the very short-term, VIX also broke the resistance in place since March 2020 today.

Eyes open.