JNK High-Yield Junk Bonds Weekly Chart Overbot Rising Wedge Negative Divergence Topping Action Ahead

Here is another high-yield junk play showing a blue rising wedge, overbot conditions for money flow and stochastics, and firm negative divergence desiring a smack down for price. In the shorter term note the short green lines that do show a long and strong profile and want to see price come back up to test these highs again after the spank down occurs. This is topping action.

After the smack down price should come back up to test 40-42 but the smart traders that made the dough from the easy money rally since the Fall are likely jumping ship now. Projection is a smack down on tap, the price will come back up for another look at these highs, then roll over. Sideways to sideways lower prices are projected for the remainder of the year although further quantitative easing will require reassessment. 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.