Posted by: stockscooter | May 12, 2012

High Yield Bond Update

The high yield market is going nowhere, fast.  The chart shows the problem it has in advancing above the .618 retracement area (13.21), of the initial wave 1 move down from 14.88 to 10.52.   It may have completed an A-B-C correction as noted on the chart.  If this market doesn’t find strength quickly, by month’s end, it may breach the lower yellow trend line as well.  If that happens, there is high probability for much more decline thereafter.  See my previous post, to review other technical weaknesses. As always, do your own due diligence.

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