Junk Bonds – September 21, 2023

Last post on JNK: https://bartscharts.com/2023/08/16/jnk-august-16-2023/

On the daily chart below the JNK gapped down today and closed below (daily) the two trendlines we have monitoring. On the “good” and “other” scale this is an “other.”

That being said, the REAL trend line that is CRITICAL is the second chart … a daily close below that and we might have the nascent beginnings of a credit event on our hands …

JNK – August 16, 2023

Last post on JNK: https://bartscharts.com/2023/06/27/jnk-geometry-june-27-2023/

Well, we have a BUY PATTERN on JNK right around the “key” trend line … that’s been holding the Junk Bonds up for all of 2023 and the last quarter or so of 2022. It’s important .. doing “basic” trend line construction we can see the “minor” purple line will give us a heads up but I think Mr Red Trend line is the key … we lose that and I find it hard to get this market going higher for a while…but you never know, right?

JUNK (JNK) Bonds – March 05, 2023

The credit markets are a very important measure to monitor/watch w/ regard to equity volatility and strength. A correlation exists where deterioration w/in the Junk Bond market usually leads to or portends to weakness in the equity market and/or an increase in volatility.

We have a VERY important pattern appearing on the hourly JNK BOND ETF chart below … it’s a “near perfect” Gartley Sell Pattern. The two red arrows are showing the expected levels for resistance and, quite possibly, the beginning of the next leg down in JNK BONDS. If we get a strong close above the 93.71 level then I would consider this PATTERN FAILED. Above the old high at 94.84 and I suspect a strong and continued rally in equities.

This is one of those big flashing lights to monitor over the coming week …

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