The Fed over the past year has continued to hint, that they would raise interest rates. Billions of free thinking people have NOT bought into this theme, as they have pushed yields lower and bond prices higher and higher.
Below takes a peak a 20-Year bond ETF (TLT) over the past decade.
CLICK ON CHART TO ENLARGE
No doubt about it, TLT remains in a 10-year rising trend, highlighted by channel (A).
The nice rally in TLT this year, has pushed it up to the underside of rising channel (A). At this time it is actually kissing the underside of two potential resistance lines at (1) above.
TLT is attempting to breakout, as it is kissing the underside of channel resistance, for the 4th time in the last decade. As it is kissing resistance, weekly momentum is now reaching lofty levels.
Is it possible that the S&P 500 could be breaking out to new highs and bonds could be peaking at the same time?
No doubt about it, from a Power of the Pattern perspective, TLT finds itself at a very interesting price point at this time.
If TLT would happen to peak and stocks rally, mean the world didn’t come to an end over Brexit?