Are Junk Bonds about to send stocks a bullish message? A breakout test is in play that will go a long way to go in answering this question.
Junk Bond ETF (NYSEARCA:JNK) is currently testing the January 2018 highs and the March 2017 lows at (1).
While testing these key levels, it is also testing two falling resistance lines.
If JNK happens to succeed in breaking above this key resistance zone, Junk bonds would send stocks a short-term bullish message.
Keep a close eye on JNK here, as this is not your typical short-term resistance/breakout test for them!