The comparison shows a high correlation between junk bonds and equities. The last Friday’s rally sparked by NFP and the news related to AMZN moved the equities ahead of the junk bonds. What we need to see next week, whether the junk bonds are going to retest the broken trend line first or start a continuation to downside. It seems the AB-CD pattern is not completed. If this is the case we could see a pullback in SPY too.
Trump also just announced hiking teriffs, mentioned slow progress as reason. Will be interesting to see if market takes back any of the trade talk hope $$?
I know, trading news is bad practice . But seems to be big news..
SviCapital
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@leftey, I will be watching the futures market opening in 4 hours. A gap down would be a sign of Asian market reaction.
I know, trading news is bad practice . But seems to be big news..