Junk Bonds Continue Divergence, Testing 9-year Support

by Kimble Charting

CLICK ON CHART TO ENLARGE

Junk Bonds have sent an important message to stocks at important tops and bottoms over the past 20-years! Junk bonds sent bullish messages to stocks as they created bullish divergences at the lows in 2003 and 2009.

We are primarily funded by readers. Please subscribe and donate to support us!

They also created bearish divergences, sending a negative message to stocks in 2000 & 2007, as they turned lower months ahead of S&P topping.

This year junk bonds have been diverging with the S&P 500 for almost a year. This chart highlights that Junk bonds and the S&P 500 are both testing support off the 2009 lows at the same time.

Keep a close eye on what Junk bonds do between now and the end of the year as they test 9-year rising support. How they perform at support, should send an important message to the S&P 500.

Views:

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.