For the first time in eight weeks, the Dow and the S&P closed lower. The two indices were down 50 bps and 21 bps respectively. The Nasdaq let off the gas ever so slightly as well, closing down 20 bps. Lastly, the Russell was down 131 bps. Two weeks ago we discussed the potential cracks forming in the junk bond market. Well this past week those cracks widened a little more. Junk bond ETFs traded down to levels they have not seen since early March. A flight to quality can often signal more tumultuous times ahead. However, after a rather rough week, junk bonds did seem to show a little life in the form of a Friday bounce which helped dampen their losses for the week. Finally, treasuries were mostly weaker this past week as the yield curve continued to flatten.