The High Yield Bond Market is Hanging In There

Just when it looked like the rally in the high yield bond market was nearing an end, Chair Yellen’s recent dovish tones may have come to the rescue. The weekly chart of the SPDR Barclays High Yield Bond ETF (JNK) shows the merging trend lines of a rising triangle nearing their apex. Last month the fund price began moving laterally and outside the support line, and last week’s large dark candle suggested it might be turning lower. That scenario is in question now. A break below $36.50 and the long-term trend is reversed but a new high and the rally resumes.