At The Crossroads…

Earlier this month we saw bond yields ”spike“. However, they have recovered fairly nicely. But bonds are about to hit a crossroads. Is this just a normal retracement that is going to lead to the new down leg in bonds (and thus give equities another boost) or was this just a buy in the dip opportunity?

The Chart

Below is the chart of 30 Year U.S. Treasury Bond futures. As you see, there are 3 distinct areas/levels.  We have the ~135 area which has been support. The 140 area is a clear inflection point while the ~145 area has been resistance. If 140 is not reclaimed and is rejected, I think the 135 area is likely to break. The more an area gets tested, the higher probability it has to break, especially with the equity market grinding to new highs.

30 Year U.S. Treasury Bond ($ZB_F) 

 

 

 

Tags: $TLT $ZB_F $TBT

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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