The bearish open in the HYG ETF coupled with the bullish gap in both shorter- and longer-dated Treasuries (IEI ETF, TLT ETF respectively), make it reasonable to expect that the stocks won't be able to challenge their own bearish gap.

That's because the HYG:SHY ratio is also getting hammered at the open, making it justified to hitch a ride on the downside momentum. Please see the Trading position section for details.

Trading position (short-term; our opinion): short positions entered at market (that's 3110 currently) (100% position size) with stop-loss at 3250 and the initial downside target at 2990.

Thank you.

Monica Kingsley
Stock Trading Strategist
Sunshine Profits: Analysis. Care. Profits.