The TLT chart below was posted on 8/24, reflecting that TLT was up against the top of a trading channel, creating what looked like a rocking chair pattern. (see post here). At that time TLT was trading at $109….TLT gapped higher above this resistance line and moved a few percentage points higher.
Is TLT a “Forever Strong” ETF? See update below…
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Gold and Bonds have been very strong this year! TLT is now reaching its 23% Fib resistance level (based upon the highs reached during the 2008 financial panic) a couple of resistance lines that are drawn from key turning point over the past few years.
TLT forever strong? Watch the price action of TLT real closely right now because if TLT can break above these resistance lines, I suspect equities are in big trouble.
Remain of the belief that the outcome of the Dollar support/Euro resistance test (see post here) , will have much to do with TLT action going forward.