Presented with little comment except to note that US and European credit markets have been sending warning signals all year; whether they rally to meet stocks or stocks crack to credit's concerns is not for sure - though the truism that credit anticipates and equity confirms remains as prescient as ever. However, it appears the macro-economy is better reflected in credit and with the Fed suggesting its liquidity anxiety is rising, perhaps equities will recouple once again...
European credit (especially financials) have been horrible all year... equities began to catch down today...
[3]
but it is US equity markets that stand out in their ignorance (or crystal ball-like hope)...
[4]
The 'trade' appears to be convergence...
Charts: Bloomberg and Capital Context [5] [5]