High Corporate Bonds Are Signaling Caution For The Risk On Trade

High Corporate Bonds Are Signaling Caution For The Risk On Trade

The iShares iBoxx $ High Yield Corporate Bond (NYSE:), another risk on / risk off indicator, switched to a cautionary projection about 6 weeks ago when it was slapped downward the moment it touched the upper line of its 7-year descending black channel.

HYG Weekly Chart

HYG Weekly Chart

Granted, the HYG is still in its 1.5 year slowly rising red channel however, the next time it reaches the black line it will draw more scrutiny to the question of whether the risk on trade is done for a while.

(Why?)

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