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March 07, 2006
Bonds Gap Down Yet Again
Bonds were rocked yesterday and the iShares ~20-year T-Bond Fund (TLT) gapped below support at 89.7. This was the fourth gap in a row and the bond ETF is nearing support from the November low. Despite this support, I would expect lower prices ahead. TLT broke trendline support in late January, consolidated in February and broke support in March. This signals a continuation of the Sept-Oct decline and a move below 88 is likely. Key resistance is now set at 91.5 and it would take a move above this level to reverse the downtrend.
Posted by Arthur B. Hill at March 7, 2006 07:11 AM