HYG and JNK charts are identical technically so the weekly profile will be shown by HYG and the daily profile by a JNK chart. Note the failure of the two-year blue trend line in July, price then came up to back kiss, then failed. The red falling wedge hinted that a recovery bounce was needed but all the weekly indicators are weak (red lines) except for the MACD histogram that was positively diverged.
The daily chart, as you will see for JNK, was in positive divergence so that created the bounce you see over the last couple weeks. The indicators remain sick, however, the 20 MA is crossing down thru the 50 MA which is bearish as well. Watch to see if the RSI can get above 50% indicating some more upside that will test the 50 MA resistance at 87.20, but then price should roll over again. Price needs to come back down to 82-ish to try to create soem positive divergence to try and place a bottom, thus, further weakness ahead, sideways to sideways down into 2012.
For HYG, JNK, LQD and MUB charts, use search box above for keystone speculator.