Heavy bond action continues. The TLT (NASDAQ:TLT) (iShares Barclays 20+ Treasury Bond Fund) is working on a fourth straight loss after opening today’s session with a gap higher open. This nasty reversal has pushed the TLT below the July lows. Early in August the index moved ever so slightly past the July peak. A close on Monday, Aug. 31, below $161.75 would mark a key downside reversal in the monthly charts.
Outside of a sharp dip in early June bonds have remained in a very narrow range. A clear break below the $161.00 area in the TLT could lead to a big expansion of the five-month range.
Banks/Financials are perking up in response. The BKX (KBW Bank Sector Index) printed a new weekly low last Friday; and looked to be headed lower.
This week the index has rebounded nicely but still remains well below the August peak. Definitely a sector to watch next week.
No positions.
Gary S. Morrow's original post can be read here.