SPDR Barclays High Yield Bond (ARCA:JNK) has pierced its price channel bottom after breaking out of a 3-year triangle.
Usually a pierce of the price channel bottom at this point in the channel’s development would lead to a retrace that fails to make it to the channel top, then a breakout of the channel downwards into a melt-down channel.
The target below could be as far as the 2009 low.
The only way JNK can save itself now is with a swing up that pierces the top of the pink price channel. That would suggest a sideways move before a decision on collapse.