Credit: HYG, LQD & JNK looking shaky

11 Eyl 2020

This graph aggregate HYG+LQD+JNK and divides by 3 for an average. It then creates a linear regression channel. It also shows some correlation coefficients to OIL, US10Y treasuries, and the Chicago Fed's National Financial Conditions Index. In short, it is about to break the lower bound and it looks like the recovery, even with the Fed's help, is incredibly shaky.