Final reading for 1/6/2025

And is there a crack in credit??

Final VIX Mix reading for 1/6/2025. Neutral territory. Fine but none of the components are in the green yet.

Meanwhile, among the non-vol trends we monitor is the High Yield Bond Cumulative Advance-Decline Line that was developed years ago by technical analyst Tom McClellan. Easiest to think about it as market breadth for junk bonds. As you can see from this chart, uptrends in HY A-D tend to coincide with uptrends for the S&P 500. And the stock market has behaved less well when HY A-D rolls over (see 2015, 2018 and 2022). I’m keeping an eye on the right side of the chart. Credit spreads remain tight but equity bulls will want that red line to reverse back up.