HYG High Yield Corporate Bond Fund Weekly Chart

The two-year upward sloping blue channel pattern has ended. Price collapsed thru the bottom rail during the August equities crash and then rebounded for a back kiss of the bottom rail in October, then failure. The August-October bottom shows a lower low in price with only the MACD histogram and money flow positively diverged, which won out to supply the oomph for the upside rebound. The three red lines for the other indicators, however, are all weak and bleak, and wanted to see more price weakness, and price did travel lower to test critical support at 82, so far.

The chart has a sideways vibe moving forward and price is trying to sneak up above the top rail of a sideways triangle currently (thin black line). The 20 week MA is under the 50 week MA which is very bearish. Support at 82 can serve as a neckline for an H&S that would ultimately target 74 as 2012 plays out. In the near term simply watch how the sideways move plays out using the 50% levels of the RSI, stochastics and money flow as a guide. Projection remains for sideways to sideways down prices going forward for the weeks and months ahead. This information is for educational and entertainment purposes only. Do not trade based on this information. Consult your financial advisor before making any investment decision.