High Yield Breakout to Multi-Yr Peak Offers S&P 500 Green Light
Alert: HALISTER1
Source: BFW (Bloomberg First Word)
Tickers
JNK US (SPDR Bloomberg Barclays High Yield Bond ETF)
HYG US (iShares iBoxx $ High Yield Corporate Bond ETF)
Topics
S&P 500 Stock Market Moves
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UUID: 7947283
(Bloomberg) -- High Yield Corporate Bond ETF has advanced to levels not seen since 2015 and the bullish breakout may serve as a precursor for fresh all-time highs in U.S. stocks, Bloomberg Technical Analyst Sejul Gokal writes.
- See live chart here
- Crucial resistance on HYG shattered at 88.36
- S&P 500 E-mini generic futures (see chart) has carved a short-term base against the important 2,354 support (61.8% Fibonacci, ichimoku cloud support, French election gap base)
- HYG, ES1 rolling 30-day correlation at +0.68, rising since turning positive in late April
- Volumes lack and poses mild risk factor:
- HYG breakout was on lowest volume day this month
- 3-day rally in S&P 500 futures met with diminishing volumes, a sign that buying commitment somewhat lacking
- NOTE: U.S. stocks are poised for a “speculative overshoot”, BofA Merrill Says
- NOTE: Sejul Gokal is an technical strategist who writes for Bloomberg. The observations he makes are his own and are not intended as investment advice.
Alert: HALISTER1
Source: BFW (Bloomberg First Word)
Tickers
JNK US (SPDR Bloomberg Barclays High Yield Bond ETF)
HYG US (iShares iBoxx $ High Yield Corporate Bond ETF)
Topics
S&P 500 Stock Market Moves
To de-activate this alert, click here
To modify this alert, click here
UUID: 7947283