Wednesday, December 8, 2010

TheTechnicalTake: TLT

The move higher in long term Treasury yields, that I first started to write about on October 15, 2010, is beginning to pick up steam.  This can be seen in figure 1, a daily chart of the i-Shares Lehman 20 + year Bond Fund (symbol: TLT).  

Figure 1. TLT/ daily

As TLT moves lower, yields move higher.  Yesterday, TLT broke below a key support level at 94.65.  The next level of support comes in at 89.44.

While higher yields are in our immediate future, equities have not fallen as I would expect them too.  Maybe this will be the "next shoe to drop". 

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