Are We … So Back?
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Analysis by Alex King, CEO, Cestrian Capital Research, Inc.
In news that is big only to people with very narrow fields of interest, the S&P500 crossed up and over its 21-day EMA two days ago and put in two daily closes above it. So on that measure, we can declare the last few days’ correction all done and dusted. Life is rarely that simple of course, so let’s get into it in detail.
US Government Bond Outlook
The 10yr is testing the upper bound of the downward channel it has formed in recent weeks. I think resistance will hold and that the larger-degree fall in yields will continue.
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Longer-Term Treasury Bonds (TLT / TMF)
I’m aware of just how dull this chart is. But it is important to realize just how beaten-up US bonds are. I do not expect this to be a permanent situation.
