LQD, Potential Inflection Point Is about to get Tested

In my previous LQD study I outlined a possibility to use the LQD as a leading indicator for equities. Looking at the daily chart a few weeks later we can see that the price is within a well defined wedge. Perhaps, the next week will bring a test of the wedge boundary. If there is an impulse breakdown it would be worth watching its effect on the direction of equities and perhaps to be cautious about investing in equities at that time. Let’s see if the LQD provides any hint.

Starting next week a bunch of mega cap tech companies will be reporting. Each of them is a market mover. Considering that the Nasdaq is at all time high the techs earnings will be under the investors microscope.

04/20/2019