One market that is retaining it’s bullish character is the bond market. It’s been bouncing off a bullish trendline and staying above it’s 200 ma while digesting it’s big gains from the end of last year. Below are 3 chart views to give you an idea of where we are, where we’ve been, and potentially where we’re going from here.
Momentum charts like this tend to consolidate and then move in the direction of the primary trend when the find trendline support.
60 min view showing that we are essentially channeling right now. No good risk/reward here, but patience could reward here. This chart should give a clear signal as to the future direction of this instrument.
Long term view is very strong. My only worry is that in late 09′ we had a blow off top. Should we break down from the current levels and break through it’s 200 ma on a daily view all bullish views would be off the table and it would most likely be a good short candidate. One must be flexible and not commit to a side, but wait for the charts to tell you the correct course of action.
