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Chart of the Week – Intermarket Relationships

Asbury Research

Asbury Research
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CMT Chief Market Strategist

SPDR Bloomberg Barclays High Yield Bond ETF (JNK)


The chart below highlights JNK’s Dec 12th resumption of its larger 2019 advance, which targets an additional 1% rise to 111.50. However, the validity of this breakout is now being tested as JNK has collapsed back to the breakout point at 108.77. 

A sustained decline below 108.77 would negate the bullish implications of the chart and suggest a significant top is in place at the recent highs.  We are particularly interested in JNK because of its statistically significant and stable 10-year positive correlation to the S&P 500.

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