High yield spreads have really come in by a large margin since they widened out to just under 900 bps earlier this year. Through yesterday's close, spreads were sitting at 600 bps above Treasuries, according to the yield on the Merrill Lynch High Yield Master Index. Most readers are aware that tighter spreads indicate looser risk appetites, so when spreads narrow, it indicates that investors are more open to riskier assets, and vice versa. As things currently stand, spreads are testing a key level here, representing the uptrend line from their cycle lows nearly two years ago. High yield spreads bounced off of that trend line on June 8th, when they got as low as 582 bps, but then widened out to as much as 632 bps last Thursday. Since then, they have come in by 32 bps in a pattern resembling the one we saw back in late March, when spreads initially tested and bounced at the trend line from last summer's low just before oil prices collapsed. If you are a bull here, you really want to see spreads repeat the pattern from March once again this time around.