HYG High-Yield Corporate Bonds Weekly and Daily Charts Overbot Rising Wedges Negative Divergence

High-yield has been moving up with the equity markets in lock-step. The charts are universal with overbot conditions, rising wedges and negative divergence which forecasts trouble ahead. The daily indicators are trying to squeeze out a bit more juice, which may help HYG print a bit higher into the apex of the rising wedges but a roll over would be expected at anytime. When the weekly and daily charts line up with negative divergence it forecasts extended weakness forward. The blue lines show a potential head and shoulders if the current highs place a head.  If HYG rolls over in the days and week or two ahead as the charts forecast, then the lock-step relationship should bring the broad indexes lower as well and the charts for the major indexes are all similar to HYG.  The next couple weeks are going to be very interesting. The charts above say the High-Yield Bubble is about to rupture. In four short years, HYG has moved from 40 to 95, +140%.  Keep straight pins away from this balloon since it may pop at anytime. This information is for educational and entertainment purposes only.  Do not invest based on anything you read or view here.  Consult your financial advisor before making any investment decision.