Viewers of this blog and Dshort over the past year are well aware that the High Yield mutuals funds have been a very good leading indicator for the stock market. Below is an update on the High Yield mutual funds.
CLICK ON CHART TO ENLARGE
High yields have given back a little in price of late. At this time the high yields remain above key support and the 50-EMA line. A few negative snowflakes are starting to fall, yet if history is any guide from a High Yield fund perspective, no major warning sign has taken place. I will continue to rent the high yields until support/50-EMA is broken.