Bonds have been hit hard since the highs around the 4th of July last year. Is this big decline be creating a bottoming pattern? Bottoms Up for bonds?
Below looks at TLT's pattern over the past couple of years.
Last summer when bonds were peaking, it was easy to find bond bulls, as bullish sentiment for bonds stood at 90%. Today it's not so easy to find bullish bond traders.
TLT could be attempting to create a reversal pattern (inverse head and shoulders) following a 20% decline from its highs. The inverse H&S pattern is far from proven at this time. If TLT breaks above neckline resistance, it would increase the odds that this reversal patterns is important to the bond market.