Saturday, March 14, 2015

Corporate High Yield Bond ETFs and MUTF Testing Break Back Above Long-Term Support on Weekly Chart

As the three charts below show (weekly closing prices), the ETFs HYG and JNK, and mutual fund NHINX, ended the week on a relatively long-term rising support line (solid green) that was regained in late January 2015 during the rally that started in mid-December 2014.  

The support and long-term resistance lines (solid red) form rising channel patterns.  Thus, the long-term trend (since early 2009) is still up as of this week's close.  Will it continue? I really don't know!  After this two-week correction, a rally off this support line would be a positive sign.  The upcoming week may be an important one for corporate high yield bonds.

Click Chart to Enlarge

Click Chart to Enlarge

Click Chart 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 positions in several corporate high yield bond mutual funds at the time this article was written. This position may change depending on future price action.

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