No ifs, ands or buts… Junk Bonds (high yield) have entered a bear market as they just broke down below the October 2014 lows, which is the bear parameter for the stock market as well.  JNK is similar… worse actually.

Never mind 20% rules about bear markets, this is now a downtrend on an intermediate basis and cyclical bear market (barring some sort of reversal stimulant, like policy making designed to take us further down the Rabbit Hole of debt, leverage and speculation).  Even if this bounces, it would have to get all the way above 89 to neutralize the trend.

[edit] Yes, I know much of this is related to the oil and energy bear market, but how long do we make excuses for it?  After all, oil’s rise to $140 a barrel was a massive promotion also spurred on by policy making, as part of the big inflation trade bubble that blew out years ago.