Time Frame: Medium-Term | Update Schedule: Daily | Source: Nasdaq
Construction:
This is the cumulative advance/decline line for the high-yield bond market. If more high-yield (junk) bonds are rising than falling, then this line will rise. It's often useful to look for divergences in this line vesus HYG or even the stock market via SPX or SPY. When this cumulative a/d line makes lower highs while HYG or SPY makes higher highs, it suggests underlying weakness and potential trouble ahead. Conversely, when this line makes higher lows while HYG or SPY makes lower lows, it suggests internal strength and is a positive sign going forward.
