IS THE "JNK" MARKET SIGNALLING THE TOP?
The counter rally in the HY market has been explosive! However, it may be nothing more than technically "filling the gap"? The unfilled gaps shown below have troubled us since Q4 but now potentially appear to be about to be filled?
The Elliott Wave count for a completed Wave "4" fits nicely with this completion.
The markets are being driven by credit but the current liquidity issues suggest a "consolidation" at lower levels is approaching and the"JNK" may be signalling exactly this.