Junk bond mutual funds are now nearing resistance levels at (1), which has kept them from moving higher for the past 10-years. In the past when these resistance lines were hit, it represented a peak for the junk market and stocks peaked around the same time, too.
The adjusted spread on the high-yield complex is now near the levels hit in 2000 and 2007 at (2) above -- a level where Junk and stocks peaked in the past. For more details on the Adjusted spread...see here
Is the junk-bond market priced to perfection? Defaults in this complex have been pretty much zero for the past 18 months.
Does it get any better than that?
Humbly I feel junk is acting a little too perfect of late...I'm keeping a close eye on them.