High Yield Topping Pattern?
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High Yield/Junk Bonds are often quality leading indicators for the future direction of the equities markets and can help investors shape portfolio construction.
Did Junk Bond ETF (JNK) create a "Head & Shoulders" topping pattern up against falling resistance line (1) at (3) of late?
The "Power of the Pattern" would be suggesting to respect the price action of JNK, because if the pattern read is correct, it would be suggesting softness in the stock market is around the corner and to lower some exposure to equity holdings.
(c) Kimble Charting Solutions