False Breakout On Bonds

Bonds broke out to a new daily cycle high on Friday, but then lost the breakout out on Monday.

Monday was day 25 for the daily bond cycle, placing it in the early part of its timing band for a daily cycle low. Losing the breakout indicates that bonds are feeling the gravitational pull of the pending DCL.

If bonds delver bearish follow through and close below the 10 day MA that would indicate the daily cycle decline. Bonds are currently in a daily uptrend. If bonds form a swing low above the lower daily cycle band then they will remain in their daily uptrend and signal a cycle band buy signal.

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