TBT formed a piercing line candle pattern today at historical support at right above 37. Today's lowest point is also the lowest point in the down trend since early April. PPO is rising while price is making new low, showing a bullish divergence.
On the contrary, TLT formed a dark cloud cover candle pattern. PPO and price are showing bearish divergence.
From a purely technical perspective, above are evidences for a potential bullish reversal for bond yields and bearish reversal for bond prices. With one concerning factor, volume for both TLT and TBT were below average.
My gut feeling is that with the almost unstopped bull run since last March, the market needs to have a long and deep enough correction to balance the bullish side of the move.
Advise to wait for more confirmation.
No comments:
Post a Comment