Largest Corporate High Yield Bond ETF (HYG) Regains Key Support Line and Breaks Above Falling Resistance

The daily chart below shows that after bouncing off support line S2, HYG has moved back above support line S1, which failed last week.  

Today's price action has also taken HYG above short-term falling resistance line R1, which goes back to the beginning of this most recent sell-off 

Is this rally for real or another head fake leading to lower prices?We have no idea!  But we shall probably see soon enough.  

There are more broken support lines (not shown on chart) just above current prices that could act as resistance.  But the market often does what few investors expect it to do.

Click Chart to Enlarge

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The author/publisher has several positions in corporate high yield bond mutual funds at the time this article was written.