{"id":6359,"date":"2017-07-12T07:30:00","date_gmt":"2017-07-12T07:30:00","guid":{"rendered":"https:\/market-minute\/keep-a-close-eye-on-this-chart\/"},"modified":"2017-07-12T07:30:00","modified_gmt":"2017-07-12T07:30:00","slug":"keep-a-close-eye-on-this-chart","status":"publish","type":"post","link":"https:\/\/jeffclarktrader.com\/market-minute\/keep-a-close-eye-on-this-chart\/","title":{"rendered":"Keep a Close Eye on This Chart"},"content":{"rendered":"

\tIt’s been almost one month since we took a look at the high-yield bond market. Back then<\/a>, the iShares iBoxx High Yield Corporate Bond Fund (HYG) was on the verge of breaking down from a bearish rising wedge pattern. And, since HYG typically leads the broad stock market, I argued that if HYG started to sell off, then the stock market wouldn’t be far behind.<\/p>\n

\tSince then, HYG has stubbornly refused to break down. But the chart still looks ominous. And we could see a selloff any day now.<\/p>\n

\tTake a look at this chart…<\/p>\n

\t\"\"<\/p>\n

\tHYG broke down from its rising wedge pattern shortly after I wrote about it last month. The stock then found support at its 50-day moving average (MA) line – which is a logical spot at which to expect a bounce.<\/p>\n

\tSince then, though, HYG has just been chopping back and forth. It’s just like the recent action in the stock market—all it’s doing is frustrating bulls and bears alike.<\/p>\n

\tBut it now looks like HYG is about to make a large move lower.<\/p>\n

\tLook at the red circle on the chart. Notice how the 9-day exponential moving average (EMA) is declining and on the verge of crossing below the 50-day MA. This “bearish crossover” – if it happens – should kick off an intermediate-term decline phase for HYG. I expect that decline will be similar to the action in HYG last November.<\/p>\n

\tThat would likely create some selling pressure for the broad stock market.<\/p>\n

\tOf course… there has to be some sort of a catalyst for that sort of move. Perhaps that catalyst will come from Fed Chair Janet Yellen when she offers her testimony today and Thursday.<\/p>\n

\tWe’ll see…<\/p>\n

\tBest regards and good trading,<\/p>\n

\t<\/p>\n

\tJeff Clark<\/p>\n

\tP.S.<\/strong> If you have any questions about my thoughts on the broad market, option trading, or have some great trading stories to share, be sure to send them to me right here.<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

This chart still looks ominous. And we could see a selloff any day now\u2026 <\/p>\n","protected":false},"author":28,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"ep_exclude_from_search":false,"service":"","footnotes":""},"categories":[1],"tags":[],"publication":[10],"person":[7],"newsletter-type":[],"ticker":[],"class_list":["post-6359","post","type-post","status-publish","format-standard","hentry","category-market-minute","publication-market-minute","person-jeff-clark"],"acf":[],"ai_tts_audio_outdated":false,"ai_tts_legacy_post":false,"_links":{"self":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/6359","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/users\/28"}],"replies":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/comments?post=6359"}],"version-history":[{"count":0,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/6359\/revisions"}],"wp:attachment":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/media?parent=6359"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/categories?post=6359"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/tags?post=6359"},{"taxonomy":"publication","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/publication?post=6359"},{"taxonomy":"person","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/person?post=6359"},{"taxonomy":"newsletter-type","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/newsletter-type?post=6359"},{"taxonomy":"ticker","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/ticker?post=6359"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}