BATS:TLT   Ishares 20+ Year Treasury Bond ETF
1
Bonds, as measured by the TLT , have finally showed signs of bottoming with the breakout above the pink trend while also confirmed by RSI . Considering stocks and bonds have had a strong negative correlation since 2008 (deflationary periods cause inverse correlation, while inflationary periods, such a the 1990's saw positive correlation between these asset groups).

Bonds are usually leading, which sets up quite nicely for this end of quarter ramp with the S&P trying to eke out an all time high. This is a strong caution signal for a sell in May scenario.

Copper broke down a couple weeks ago out of a symmetrical triangle as well, so beware all the cheer leading. Trade the price action, but know the bigger picture, as of today, is signalling a pullback coming late spring / early summer.

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.