Tuesday, March 8, 2016

Market update : treasuries (March 8, 2016)

The bond market can provide clues as to stock market performance. After all, if a dollar goes into bonds, that's a dollar that can't find its way into equities. So it's usually a good idea to follow the technical action in treasuries. The 20 year treasury bond fund (TLT) remains in a bullish wedge pattern, but is currently testing trendline resistance. If you're bullish equities, failure at this trendline is what you're looking for.

A bullish breakout in the TLT would be further indication of traders' preference for defense and safety, normally not the type of environment for equities to flourish.

Update 3 days later:

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