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Junk Bond ETF (HYG) has created a bearish rising wedge over the past few years. Weakness of late has HYG breaking support at (1) in the chart above.
Effective yields on the high yields are hitting the lowest levels in 15 years, even below the lows reached in 2007.
In the past a breakdown in price and a rally in yields on high yields has suggested challenging times are ahead for the stock market/SPY. Will it be different this time?