Are Junk Bonds Starting To Weaken? Stock Bulls Hope Not!

Several risk on indicators surged higher into year-end, such as small cap stocks and junk bonds.

And as we typically see, this coincided with a big year-end stock market rally.

Today we take a look at the Junk Bonds ETF (JNK) to see if this is sustainable into Q1 of 2024.

Below is a weekly chart of the $JNK. As you can see, the Junk Bonds ETF has tested the Q1 2023 highs (resistance) for the past 3 weeks at (1). $JNK is also testing this important price level while its RSI is the highest in a few years at (2).

Sign up for our FREE newsletter
and receive our best trading ideas and research

To sum it up, junk bonds are overbought and testing price resistance… and starting to slip a bit. Stock market bulls hope $JNK doesn’t continue lower. Stay tuned!

$JNK Junk Bonds ETF “weekly” Chart

junk bonds etf price rally trading analysis with resistance levels - chart image

Note that KimbleCharting is offering a 2 week Free trial to See It Market readers. Just send me an email to for details to get set up.

Twitter:  @KimbleCharting

Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.