In what seems like a never ending march higher (and we're not talking about oil or gold), high yield spreads (based on the Merrill Lynch High Yield Index) rose yesterday to 775 basis points above Treasuries, which is the highest level since March 2003. Since their lows in June, spreads have now risen by 221%, which makes the current period the largest spike the market has seen over the last ten years.

Until this spread begins to tighten, it's going to be a tough go at it for equities.

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