Monday, September 8, 2014

Two Large Asset Corporate High Yield Bond Funds Turned Back at Former Support - Lower Prices Ahead?

Two very large-asset corporate bond funds, BHYSX (Blackrock) and VWEHX (Vanguard), have been turned back at the bottom side of former long-term rising support lines, which were broken in July 2014 sell-off.  The August 2014 rally ended at the bottom side of these support lines, which are now resistance lines R1 and R2 in the daily charts below.

Has a very short-term counter-trend rally ended with lower prices ahead?  Going forward, we will be very interested in seeing what happens if support line S1 is tested again at less than oversold conditions (per the RSI).  Failure of this support line could lead to much lower prices.

(Click Charts to Enlarge)

Not Investment Advice | Important Disclaimer: 
The content in this article, including the identification and discussion of any specific security (e.g., bond fund), is NOT meant to be and should NOT be construed and/or used as investment advice. This article is for general information and educational purposes only. Please read the Disclaimers  for in their entirety. The U.S. Securities and Exchange Commission website has guidance on selecting an investment adviser.

Financial Disclosure:
The author/publisher has closed his position(s) in corporate high yield bond funds.

Base Chart Provided Courtesy of  Analysis and Annotation by (All Rights Reserved)

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