Are investment grade bonds peaking? Some conditions suggest its possible, says Joe Friday!

This chart looks at Investment Grade Bond ETF (LQD) over the past 10-years. LQD has moved sharply higher since the lows in December of 2018.

The rally has LQD testing its 2015 and 2016 highs. While testing these highs its optimism index is near its highest level in the past 10-years at (1).

While it is testing old highs and optimism is high, its RSI reading is now at the highest level in over a decade.

Joe Friday Just The Facts Ma’am; Conditions (price, sentiment & momentum) are at rare levels that suggest LQD could be near a short-term high.