Bonds closed decisively below support at the last session.
This morning in the pre-market, they are trading near the bottom of yesterday’s range.
The TLT chart has the details. We have the ‘Wyckoff Wedge’ (as we’re calling it) as discussed in a prior update.
We’re at the danger point and in spring position.
That means, if bonds push back above the resistance and test, it’s a strong indication of a huge rally to come.
Think of the wedge as a clock pendulum oscillating down to zero.
To get the clock started again, the pendulum must be pulled to one side and then let go.
Separately, as a result of this price action, Steven Van Metre, is starting to lose some fans. Nothing against him.
It’s just that a vast majority of the investing public, has very little idea of how the markets actually work.
Wyckoff called it the ‘Composite Operator’.
Today’s interpretation could be called the ‘Central Mind’. There is manipulation behind everything … always has been.
A push below support, is doing what the Central Mind wants.
That is, the bond bulls to give up, lose their following, have accounts pulled (withdrawn) and for them to start questioning their own analysis.
Charts by StockCharts