Browse Symbol Stacks: HYG: hyg


Nowhere is 'risk on' so evident as in junk bonds. HYG has a neg. RSI divergence, which has often preceded corrections (to HYG and market). 2013 notably excepted as all kinds of bonds corrected in 'Great Rotation' promotion and SP500 happily ignored and climbed higher.


Once an oscillator "resets" (in the case of RSI, a reset means either the oscillator has dropped to 50 or below, or the periods used has elapsed (14), then the oscillator is no longer showing a divergence. The logic you're using implies that RSI has diverged since mid-2012, since that was the highest point reached. That's quite a lengthy divergence and not very good for timing. 1/9/14