If you haven’t heard, junk bond prices are tanking. The iShares iBoxx $ High Yield Corporate Bond ETF (HYG) had already broken through several layers of technical support. Then it gapped lower at the open today and is currently positioned just above an intersection of trend line support in the $87 area.
The daily MacD is overlaid on a weekly histogram of the oscillator and is tracking lower and below the center line on both time frames. Chaikin money flow moved into negative territory as the neckline of a very small head and shoulders pattern was broken, and that selling pressure has accelerated.
The next levels of support which include the 40 week (200 day) moving average are highlighted on the weekly chart.