Junk Bonds Rolling Over, Sending Concerning Message To Stocks?


 | May 7, 2019 | Kimble Charting


Are junk bonds about to send stocks a concerning message to stocks? They might be worth watching very closely for hints right now!

This chart looks at junk bond ETF (JNK) over the past 6-years. Since 2017, JNK has created the falling channel (1). The rally off the bottom of the falling channel saw it hit the top of the channel and last years lower highs two weeks ago at (2).

While testing dual resistance it looks like the apex of rising wedge pattern was in play, as resistance was being tested.

JNK could be rolling over and breaking support at (3). As support could be breaking, momentum is the highest in the past couple of years and it could be rolling over as well at (3).

At this time the S&P and Dow are currently testing last years highs. They would prefer that Junk bonds break out at (2), not rolling over at (3). Keep a close eye on JNK the next few weeks as it could send an important message to stocks!


Fundamentals tell you what to buy.  Our chart patterns show when to buy! Employ the Power of the Pattern 

See sample of our most popular research reports here  

Receive my free research to your inbox, immediately after it's posted to the blog

Email services@kimblechartingsolutions.com  

Call us Toll free 877-721-7217    International 714-941-9381