Are Junk Bonds Sending A Warning Sign To Stocks? (JNK)

Share This Article
August 15, 2018 6:08am NYSE:JNK

NYSE:JNK | News, Ratings, and Charts

Technical analyst Chris Kimble examines the year-long divergence of junk bonds to stocks and wonders if it’s a signal of a major equities pullback looming.


Above compares the Pimco High Yield Fund (PHDAX) to the S&P 500 over the past 20-years.

Junk bonds diverged from the S&P 500 for nearly 24-months, prior to stocks peaking in 2000.

Junk bonds diverged from the S&P 500 for nearly 7-months, prior to stocks peaking in 2007.

Junk bonds have been diverging from the S&P 500 for the past 12-months. Will it be different this time?

At this time “It Doesn’t Matter Until It Matters!” 

The SPDR Barclays Capital High Yield Bnd ETF (JNK) was unchanged in premarket trading Wednesday. Year-to-date, JNK has declined -0.63%, versus a 6.81% rise in the benchmark S&P 500 index during the same period.

JNK currently has an ETF Daily News SMART Grade of A (Strong Buy), and is ranked #2 of 50 ETFs in the High Yield Bond ETFs category.


This article is brought to you courtesy of Kimble Charting Solutions.


5 WINNING Stock Chart Patterns

Read Next



Free Investing Ideas Newsletter!

Join over 70,000 investors who get the latest insights and top rated picks from our free investment newsletter.

Most Popular



5 WINNING Stock Chart Patterns

Explore More from ETFDailyNews.com

Free Investment Newsletter

Join over 70,000 investors who get the latest insights and top rated picks from our free investment newsletter.

ETFDailyNews.com respects your privacy.

Best ETFs

We've rated and ranked nearly 2,000 ETFs and ETNs using our proprietary SMART Grade system.

View Top Rated ETFs

Best Categories

We've ranked dozens of ETF categories based on relative performance.

Best ETF Categories