Average correlations are still quite low, a sign of risk-on in general but for most of 2020 this has indicated a short term reversion to the mean.

The implied realized spread indicates people are still weary, while high on an anytime basis, it remains low on a 1 year basis.

The pattern has been short term shakeouts when these conditions are in place, we are expecting that as reasonably probable in the near-term (1-2 wks), otherwise market character has changed.

Have a great week!