JNK update

I've been waiting a long time for the the junk bond market to begin showing signs of stress.  Of course, as you can see from the chart below, it has been going sideways since a big rebound into 2010.  Today we are seeing some of the first real signs of stress in the charts for a year now.  The first blue support line broke down recently and now we will see if the longer term red line will hold.  I bet not because it looks like the chart is setting itself up for a 3rd wave down.  A 3rd wave will be needed to break the red support line.

Chart is setting itself to complete 5 waves down to kiss the line, bounce into wave 2 and then come crashing back down below that support line during wave 3.