Depicted on the following monthly chart of the High Yield Corporate Bond ETFs (NYSE:) are a long-term downtrend channel, several horizontal levels of support and resistance, and a large sideways “ZONE OF CHAOS”.
HYG the current push down is accelerating and rapidly approaching a confluence of price and median channel support around 80.00.
He was trapped, for the most part, in a volatile environment and whipped “CHAOS AREA” Between 80.00 and 90.00 because mid-2009.
One drop and hold below 80.00 to speed up the sale (shown on the Balance of power indicator and is now at an extreme level) could see it retest 75.00 Where 70.00or dive even lower, in no time.
For more clues on the possible direction, see the following information.
iShares iBoxx High Yield Corporate Bond ETF Chart
The article below contains relevant and important details about HYG and the credit marketsand their potential impacts on stock markets…definitely worth reading.
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