Credit Markets Flashing Red

Unlike all the other dips since March 2009, this time we have credit markets notably weaker.  Yesterday, despite the rally in equities, credit spreads widened.  The credit indices are at 1 year highs while the equity markets are whistling past the graveyard touting backward economic data. This is the main reason why I think we will have a flush out.  The European sovereign bond spreads for the PIIGS are getting worse, not better.