Numerous articles were written around 6/23, reporting that record outflows from high yield funds had taken place (see article here)
Did these outflows/panic take place at support or a key moving average? See below…
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The majority of the high yields in the above 6-pack tested their 200-EMA lines and now are back above them. Notice that last summer the high yields tested the 200-EMA (GREEN ARROWS) and then what happened? A quality rally in the high yields took place and the broad market did the same thing.
The price action of the high yields is a positive one for them and represents a GREAT ENTRY POINT. If investos use the 200-EMA as their stop loss…the downside risk is just a little over 1%!
