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Government Bond ETF (TLT) has rallied over the past 12 days, after falling 10% in less than 2 months. Did a bearish “Head & Shoulders” top take place in TLT over the past couple of months? Possible, yet too soon to tell!
The rally over the past 12-days has TLT near the top of a 2-month falling channel. The action of TLT at these resistance lines will send a very important message for bonds/interest rates and commodities.
If TLT breaks above the channel, bond traders message would be….continued soft economy!