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.
05/05/2019
05/05/2019