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Support is support until broken. Junk bond ETF (JNK) has underperformed the S&P by 5% over the past 30 days. This decline has it setting on a trio of support.
If JNK breaks support on a weekly closing basis, odds increase it will pay “to Junk the Junk!”
A break of support for JNK would send a concerning message to the S&P 500, especially with the yields on high yield bonds reaching the lowest effective yield in history and forming a bullish falling wedge!
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