Chart of the Day - Tuesday, February 15th, 2022
February 15, 2022
Today’s Chart of the Day was shared in a note by Bank of America Global Research. The chart shows the S&P 500 over the past three years along with the US High Yield Options-Adjusted Spread. One of the more bearish developments over the past few weeks has been the widening of credit spreads. In the note, they explain, "The US high yield OAS is breaking out above resistance to suggest a year-long risk-off bottom for this credit spread. Deteriorating credit conditions are a bearish leading indicator, increasing the risk that the SPX completes the head and shoulders top."