The High Yield Corporate Bonds ETF (HYG) is at an interesting juncture.
There are, potentially, two uptrend lines that one could apply to form a large long-term triangle pattern on the following monthly chart. In turn, two possible triangles and two apexes emerge.
Price has been bouncing in between both apexes (and upper edge of this triangle) since February of this year. Attempts to fully break out and move higher have failed repeatedly since then.
In the short term, I'm more interested in the upper apex (blue) because the price, once again, sits outside and below the smaller triangle, while it's still inside the larger one.
I've added the rate-of-change (ROC) indicator in two formats. The input value of the first one is the default nine-period length, while I've changed the input value on the second one to a short one-period length.
If price breaks and holds above this upper apex, I'd monitor the second ROC indicator in the near term to see whether there is a sustained acceleration (above its zero level) to confirm support for continued buying. At the moment, it is accelerating to the downside below the zero level.
Otherwise, if it holds below this upper apex, price may decline to the lower apex, or lower, especially if the second ROC continues to accelerate on the downside.
Welcome and thank you for visiting!
The charts, graphs and comments in my Trading Blog represent my technical analysis and observations of a variety of world markets...
* Major World Market Indices * Futures Markets * U.S. Sectors and ETFs * Commodities * U.S. Bonds * Forex
* The content in my articles is time-sensitive. Each one shows the date and time (New York ET) that I publish them. By the time you read them, market conditions may be quite different than that which is described in my posts, and upon which my analyses are based at that time.
* My posts are also re-published by several other websites and I have no control as to when their editors do so, or for the accuracy in their editing and reproduction of my content.
* In answer to this often-asked question, please be advised that I do not post articles from other writers on my site.
* From time to time, I will add updated market information and charts to some of my articles, so it's worth checking back here occasionally for the latest analyses.
DISCLAIMER: All the information contained within my posts are my opinions only and none of it may be construed as financial or trading advice...
UPCOMING (MAJOR) U.S. ECONOMIC EVENTS...
* Tues. Nov. 3 ~ U.S. Presidential Election
* Wed. Dec. 2 @ 2:00 pm ET ~ Beige Book Report
* Fri. Dec. 4 @ 8:30 am ET ~ Employment Data
* Thurs. Dec. 10 @ 8:30 am ET ~ MoM & YoY CPI & Core CPI Data
* Wed. Dec. 16 @ 8:30 am ET ~ Retail Sales Report & Core Retail Sales Report
* Wed. Dec. 16 @ 2:00 pm ET ~ FOMC Announcement + FOMC Forecasts and @ 2:30 pm ET ~ Fed Chair Press Conference
* Thurs. Dec. 24 @ 1:00 pm ET ~ U.S. Markets closed for Christmas Holiday
* Fri. Dec. 25 ~ U.S. Markets closed for Christmas Holiday
* Wed. Jan. 6 @ 2:00 pm ET ~ FOMC Meeting Minutes
*** Click here for link to Economic Calendars for all upcoming events