Bonds Rebound

0

The daily bond cycle peaked in late January on day 6. A swing high then formed the following Monday. The decline into the day 17 low broke below the previous daily cycle low, producing a failed daily cycle.

tlt daily

Day 17 looked, in real time, like an early daily cycle low. Bonds proceeded to rally but could not hold above the 50 day MA and declined further. Bonds printed their lowest point on Friday since peaking in late January. Making Friday either day 13 or day 30.

If bonds are rejected by the declining trend line then I believe that Friday was day 13 and bonds will continue their intermediate cycle decline. However, if bonds can break above the declining trend line in a clear and convincing manner, then that indicates that Friday was day 30 making Wednesday day 3 of a new daily cycle.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s