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!

How The Recent Decline In Stocks Looks "Eerily" Like Major Bear Markets Of The Past