Below looks at the popular junk-bond ETF, JNK over the past decade.
Junk bonds represent so-called “weak bonds” in the States. Many keep a close eye on junk bonds for insight into where the broad stock market is headed.
Today, JNK remains inside multi-year falling channel (1). JNK has diverged against the overall rising stock-market trend since mid 2014, when it hit the top of falling channel (1).
Since the 2014 high, JNK has created a series of lower highs and lower lows. At this point, JNK is testing the top of the blue-shaded falling channel and two other resistance lines at (2).
It doesn’t matter until it matters is in play at (2).
Which stock should you buy in your very next trade?
AI computing powers are changing the stock market. Investing.com's ProPicks AI includes 6 winning stock portfolios chosen by our advanced AI. In 2024 alone, ProPicks AI identified 2 stocks that surged over 150%, 4 additional stocks that leaped over 30%, and 3 more that climbed over 25%. Which stock will be the next to soar?
Unlock ProPicks AI