Junk Bonds and the S&P 500 are both facing key breakout tests at the same time. What each does at these key price points could well determine if the S&P 500 will have the strength to retest last years all-time highs.

This chart looks at Junk Bond ETf (JNK) and the S&P 500 over the past few months. The rally off the December lows has each testing popular Fibonacci retracement levels and resistance tests at the same time.

The bullish case for stocks would receive short-term positive news if both break above these important price zones.

The one thing the bullish case wants to avoid? Both creating reversal patterns as the Fib levels are being tested. What both do here should send important short-term messages to the bullish case for stocks.

 

 

We Keep You Informed & Confident with Big Picture Chart Patterns & Alerts on Major Market Turning Points

and identify assets that have reached extreme support and resistance levels
and monitor hundreds of assets for breakouts & reversals for you
and identify high probability entry and exists points for you
all from one of America’s Top Chart technicians