Is the Junk Dump a Warning? |
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September 12, 2014 |
September 2014 Bond Updates
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The stock market rebounded nicely Wednesday but concerns over next week’s FOMC meeting may cut short the rebound. The major averages had tested short-term support before turning higher. The market internals were slightly positive as the McClellan oscillator has turned up to -79. A close back above the zero line would be a short-term positive.
The futures are lower in early trading and the selling in the Eurozone markets has increased since they opened. The focus has turned to the bond market as the yield on the 10-Year T-Note has risen from 2.32% at the end of August to 2.53% Wednesday.
Last week’s fund flow data showed that money moved out of high yield funds for the first time in four weeks. I would expect this week’s data to show even more dramatic outflows as the selling in some of the high yield ETFs has been heavy.
Is the bond market in the process of turning? A look at the weekly and daily technical studies will help you be prepared for the remaining months of the year.
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View more at: http://www.forbes.com/sites/tomaspray/2014/09/11/is-the-junk-dump-a-warning/
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