$JNK Vs. $SPX Is Telling Me to Be Unconcerned

I want to briefly look at $JNK vs. $SPX. In early November, junk bonds’ divergence from the S&P was sending warnings, and it led to that nasty corrective period in equities. The “jaws” were quite apparent leading to the correction. As the S&P 500 rallied, junk bonds were being sold off. And then the S&P followed.


And how do we look now?

No jaws. They are tracking each other nicely here. If we were facing a serious risk off moment just ahead of us, risky, high yield bonds should be getting annihilated here.


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