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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I think we are about to embark on a Z wave up to complete the rising triple zigzag pattern from the March 2020 low.
Nice. I’ve tried counting $JNK but I’m not settled on it any count at the moment for it. But I see it going up
I mean in $SPX
Ah, very good, I see.