LQD Corporate Bonds Daily Chart Overbot Negative Divergence

LQD corporate bonds feeling lots of love today, folks seeking this ticker that is made up of some stellar blue chip companies. Many perceive this play as a safe place. Price moving up means yields moving down. This chart, as well as the weekly chart, shows overbot conditions and negative divergences across the board, in other words, the folks that did buy today will probably regret it in the future.

In the near term, the RSI and MACD show a long and strong profile so they want to see another matching or higher price high, hence, the M Top projection shown by the black line. Do not look for LQD to excite much more on the upside, the charts prefer the negative divergence affects coming and price should move sideways to sideways down from here. This information is for educational and entertainment purposes only. Do not trade based on this information. Consult your financial advisor before making any investment decision.