Earlier this month the “Power of the Pattern” was reflecting what looked liked… Twin Peaks were forming in TLT. (see post here) Shared at the time the patterns weren’t bullish and if support gave way sellers would step in.
Since that time, TLT has over 8% in less than a month. Below is an updated chart on TLT…
CLICK ON CHART TO ENLARGE
TLT is nearing shorter- term support and about to fill a gap. Since TLT has declined over 10% since its “Twin Peaks” highs, a bounce is due around the gap fill, yet bond investors have to remain well aware that an unfilled gap remains in place around the $95 price level!