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Its been a tough past 12-months for Junk Bond ETF’s JNK & HYG! Performance is nothing to write home about and has lagged the S&P 500 by almost 20%.
Over the past few months bullish “ascending triangles” look to be forming. Often time the price action of junk bonds is viewed a key message for what stocks will do going forward.
The key to the patterns above is for rising support to hold and resistance to break. Should support give way, junks performance just becomes junkier!
Touch the Junk? If a breakout happens, it would be a positive!