Chris Kimble, a 30-year+ market technician and student of Sir John Templeton, updates his view of high yields, previously discussed on March 16 and April 20.
Chris comments: High yields have been a quality leading indicator for equities in the past, in both directions.
Quality price action has been the recent behavior.
This is an update of the high yield 6 pack from prior postings.
What's positive? They didn't break below the February lows. High yields not only appear to have found support on their respective 200-day EMA lines, it now looks as though they are each moving above their 50- and 100-day EMA lines.
For the equities market to really reflect weakness, these high yields would need to take out the February lows, which at this time doesn't look to be in the cards.
