Junk Bonds break above 200SMA and A/D line hits new all-time highs!

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Junk bond mutual funds and ETF's started reflecting weakness back in May, about the time the S&P 500 was starting to struggle a little bit. The decline in the junk market saw each of these 6 funds/ETF's highlighted above, to cross below their 200SMA lines, often times a signal of market softness or lack of stock market progress could be at hand.

The above charts reflect that support lines for the mutual funds did not break and now each of the funds are back above their 200SMA lines.

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The above 2-pack reflects that for the first time since May, the Wilshire 5000 and the NYSE Advance/Decline line are hitting all-time highs at the same time.

If history is a good guide, the action of the high yield funds, Wilshire 5000 and Adv/Decline line moving higher, reflects broad based strength in the markets.

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