High yield corporate bonds are keeping onto much of their intraday gains, and the Powell & Mnuchin testimony seems to have had rather limited downside price effect.

Stocks and high yield corporate bonds wavered, but appear to have stabilized in the very short run. Is this the S&P 500 uptrend renewal? The HYG ETF slowly retreating off its daily highs speaks against that - and so does the complacent put/call ratio level (not too many puts around).

Please note that both HYG and HYG:SHY are trading lower now than they were on Thursday, while S&P 500 is approaching those closing levels (and so does the Russell 2000, the IWM ETF).

Is this enough to join the long side and call it a setup favorable from the risk-reward perspective. For the above reasons, I don't think so.

Thank you.

Monica Kingsley
Stock Trading StrategistSunshine Profits: Analysis. Care. Profits.