Tuesday, August 15, 2017

High Yield (HYG) Has Broken Down, But Is There Now A Target at $86.50

High Yield ETF HYG did have a breakdown recently along with the rest of the market but the overall large upward channel is still holding. I'm not doubting that a near-term sell signal has gone in, but what I am predicting is that the support line around $86.50 might produce a bounce and buying opportunity. Currently all the moving averages are pointing to a "sell," but we are well above the EMA(34) so still definitely in bullish territory. Does High Yield foreshadow further market weakness, but more to the point, does it predict another bounce and rally?