The high yield (junk bond) spread against Treasuries, having earlier moved above the important 4% threshold, continues to advance higher. It has now eclipsed 5%. Accompanying this indicator is the SPY decline which has caused these "jaws" to move closer to closure. Maintain risk management and stay aware for signs of reversal.
Catatan
It's happening....again
Catatan
The junk bond spread recently fell below the very important 4% threshold. This is a confirmation of the "risk on" sentiment and the SPX is enjoying the ride and getting ready to test important levels. A great barometer to keep an eye on.
Catatan
The 2023 equity market advance was met with a corresponding decline in HY spreads. These "jaws" again appear to be on the verge of a potential closure.
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