Before retiring last night, I took a look at the iShares iBoxx Dollar High Yield Corporate Bond ETF (HYG) and SPDR Barclays High Yield Bond ETF (JNK), both high-yield bond ETFs, and their respective changes yesterday were a -0.10% and -0.12% respectively.
The S&P 500 was down about 1.25% yesterday as well.
If the high yield credit sector hangs in, in terms of relative strength, expect the stock market downside to be limited.
I've always thought junk was the early warning indicator or canary-in-the-coal-mine for the equity markets.
In fact the HYG and JNK ETFs are oversold on the daily charts.
The Market Vectors High-Yield Muni ETF ( HYD) looks like it could have some downside in front of it.
Can’t believe sequestration would be good for municipal governments or muni credits.
Wal-Mart (WMT) reports before the bell on Thursday, Feb 21.