Deflation talk highly Inflated!
If deflation rather than disinflation were confronting us, complacency & risk on would not be so rampant.
Deflation palaver is just that.
Check the TED spread..where's the fear?
Check the HYG/IEF & HYG/LQD spreads
RISK-ON tho @ dangerously hi levels remain in uptrends
this week's speed bump is worth paying attention to but pot holes have sunk many bears all year
Check out the AAA/Baa spread which. at 71bps down from 333 bps in 2008 is at decades lo's
Finally, Check the CRB Spot,Raw & Metals Indexes. They have only given up 50% of the last decade's secular superbull mkt gains & maybe are merely consolidating before launching Leg#2
My only point is that we are in a elevated risk area but the bloated fat lady remains in the wings!
Is the final mkt top in? will Dow #15700 provide support next week?\
We'll know more if any rally from lower levels puts in a lower hi.