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US High Yield Corporate Bond ETF HYG: At Major Support? 
​November 02 2016  ( From Tradingview,  )
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​​As the Chasing Yield Stampede is fading quickly, Market Participants have
considered taking some profit on the US High Yield Corporate Bond
​after the ​​strong performance since the beginning of 2016. 

​​Looking especially at a Daily chart on the HYG ETF
​​(iShares iBoxx ​$ High Yield Corporate Bond ETFiShares), ​we can
​observe that we​ ​did break on October 27  ​the Major Rising Wedge
Support Trendline​ that started ​back since ​​February 11 2016. ​
(See First Chart Below - Blue Trendline)

But the most intesresting is that we are back near testing the previous Major breakout trendline that started back since June 24 2014! (See First Chart Below - Red Tredline - Ellipse)
​Interesting also to note that the Volume of the HYG ETF have been ​spiking in the process of testing that Major Support trendline.  (See First Chart Below - Bottom Blue Area)

​​​​​​But few of us realize that as the HYG ETF is the ultimate risk on or risk off trade as the chasing yield environment continue to defy gravity. 

But looking on a relative daily basis with the IEI ETF (iShares 3-7 Year Treasury Bond ETF : ratio of HYF ETF over IEI ETF), it already broke a steep daily rising wedge support trendline that started back since February 12 2016!. (See Second Chart Below - Blue Trednline - Ellipse)

As a big part of this stock rally is coming from the Shares Buyback Process which is itself sustained by the issuance of debt to fund those buybacks. It then becomes crucial to follow the trend and liquidity of the High Yield market. From Factset: At the end of the second quarter, 137 companies in the S&P 500 spent more on buybacks in the trailing twelve months than they generated in earnings...
Read: Q2 Buybacks Smallest Quarterly Total Since 2013
​​​
​​​We will have to monitor carefully in the next few weeks: as we can say, HYG ETF is definitively at Technical Crossroads, even defining risks for the forward stock market behavior....





US High Yield Corporate Bond ETF HYG: Rejection Risks?   $BONDS $HYG  #Trading #bonds  #investing #hyg
DAILY Chart (Candles)
 HYG ETF (​iShares iBoxx $ High Yield Corporate Bond ETF)
​20 DMA ( Yellow Line )
​50 DMA ( Red Line )​
200 DMA ( Green Line )​

Volume ( Bottom Blue Area )​

Financialiceberg.com
RATIO DAILY Chart (Candles)
 HYG ETF (​iShares iBoxx $ High Yield Corporate Bond ETF)
over
IEI ETF ( iShares 3-7 Year Treasury Bond ETF )

Financialiceberg.com