T-Bond prices further distanced themselves from mid-June’s lows, adding to the evidence that interest rates may have made an important top. On Friday, this proxy for the long-term Treasury Bond took a leap on the opening that exceeded not only the highest target I could have projected using the hourly chart, but also surpassed a series of ‘external’ peaks recorded in June that had promised to offer daunting resistance. A selloff subsequently erased most of the gains, but this did not diminish the technically bullish signs adduced above.
TLT – Lehman Bond ETF (Last:115.89)