MUB Municipal Bond Fund Weekly Chart Rising Wedge Overbot Negative Divergence

MUB weekly chart shows negative divergence and a major spank down coming. Also, weekly and daily charts agree with negative divergence across all indicators, the kiss of death. During Fall 2010, Meredith Whitney appeared on 60 Minutes and received a lot of attention for her negative call on muni's. Note that this did occur into this year but then price reversed moving up since January providing pro-muni analysts the opportunity to use Meredith as a punching bag. Note the blue lines showing the rising wedge, overbot conditions and negative divergence that caused the Fall 2010 spank down.

At the start of this year with the 94 print, the only indicator in the short term that was agreeable to a bounce was the money flow (green line and arrow). The red circles show how lower lows were made by the indicators and price never even got down to the summer 2009 lows; this is nasty and ominous. It simply means there is unfinshed business in the 90's, even 80's. 2012 and 2013 will be very interesting.

Looking at the last few months, note the rising wedge, overbot RSI and stochastics, and firm across-the-board negative divergence. It's over. Support levels are highlighted as price falls. Meredith will be vindicated from here on out and now the punching bag will find it very effortless to punch back for the weeks and months to come. Projection is lower prices, sideways to sideways down, for the months ahead. This is a significant top. 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.

Note Added 9/27/11 at 1:27 PM EST:  Interesting development today. Keystone posted the muni charts this morning and as fate would have it, CNBC TV had a segment at lunch time by Gary Kaminski and Alexandra Lebenthal doing a vicory lap on muni's and taking another opportunity to use Meredith Whitney as a punching bag. Markets are always fascinating to watch and if the MUB charts play out as projected, with this now a significant long term top now in place, Kaminski/Lebenthal just unknowingly called the top in the muni market. Time will tell.