Junk Bonds Break Out Above Multi-Year Falling Channel

Published 07/12/2016, 08:26 AM
Updated 07/09/2023, 06:31 AM
US500
-
JNK
-

Junk Bonds have been quality leading indicator for the Risk On/Risk Off trade since the late 1990’s. I love the messages coming from junk bonds, over the past 20-years.

Junk Bond ETF’s started turning soft in 2014 and the broad markets in the states make little upward progress after that.

Below looks at an update on Junk Bond ETF (NYSE:JNK).

Junk Bond ETF Daily Chart

JNK in the chart above, is breaking above its two year falling channel and is now above both the 100 and 200 day moving average lines at (1). This is the first time in over 2-years, that JNK hits 100 and 200 day moving average lines.

With the S&P working on hitting all-time highs, this push above resistance and long-term moving averages, sends an encouraging message to the risk on trade.

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.