JNK High-Yield Junk Bonds Overbot Rising Wedge Negative Divergence Junk Bubble Grows Larger

The JNK charts mimic the HYG charts posted a short time ago so the same analysis applies. Overbot conditions, a rising wedge and negative divergence all add up to a smack down coming. Add the Junk Bubble to the High-Yield Corporate Bubble and the Dividend Stock Bubble. The March-April 2012 top is highlighted in yellow as it was when it occurred. There is a hair of momo as shown by the short green lines but price should top here and roll over receiving a smack down moving forward.  The daily chart exhibits the same characteristics as HYG so watch for a potential island reversal, a gap fill, and/or an H&S moving forward. 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.