NFTRH; Junk-Quality Credit Spreads

Junk bond fund HYG is breaking below the 50 and 200 day moving averages.

hyg

HYG in relation to long-term Treasury bonds never did break above the moving averages and you will recall by our ongoing weekly charts in NFTRH, has remained a bearish divergence to the US stock market.

hyg.tlt

Junk bonds in relation to Investment Grade bonds is doing something similar on both the weekly view and this daily view.

hyg.lqd

In this morning’s update on the Participation indexes we noted that we are trying to build data points for a given outcome.  The above goes along with over bullish market sentiment and fading participation in highlighting risk to US markets.