HYG Bearish RSI Divergence 9/6/2020
HYG or junk bonds at the daily view.
This is a project that my trading team and I are conducting. This is 9 of 9 charts (available on Trading View) that searches for clues for an imminent correction by using both June and September 2020 cases. It's a comprehensive overview that connects the charts volatility , trends, divergences, credit, and currency strength.
It seems that the credit markets had a bearish RSI divergence since August. It was too hard to see with candles. However, putting it as a line shows where the closing prices and closing RSI levels were. It seems that bearish RSI divergence finally played out in September's correction. Had I saw this earlier, I would've scaled in more VIX longs.
Not sure how far this will go. However, HYG is at a critical level where it needs to maintain the trend supports or it's going to fall like a rock. If traders and the Fed are the sword (to prop the markets up), the credit markets are the shield that protects the major indices from selling off even more. If corporate credit breaks their vital supports, we might get more than just a small correction within the ES, NQ, and RTY.
This is a project that my trading team and I are conducting. This is 9 of 9 charts (available on Trading View) that searches for clues for an imminent correction by using both June and September 2020 cases. It's a comprehensive overview that connects the charts volatility , trends, divergences, credit, and currency strength.
It seems that the credit markets had a bearish RSI divergence since August. It was too hard to see with candles. However, putting it as a line shows where the closing prices and closing RSI levels were. It seems that bearish RSI divergence finally played out in September's correction. Had I saw this earlier, I would've scaled in more VIX longs.
Not sure how far this will go. However, HYG is at a critical level where it needs to maintain the trend supports or it's going to fall like a rock. If traders and the Fed are the sword (to prop the markets up), the credit markets are the shield that protects the major indices from selling off even more. If corporate credit breaks their vital supports, we might get more than just a small correction within the ES, NQ, and RTY.