After a devastating drop due to rising 10-year yields, the VGLT treasury bond fund is sitting right atop strong support at both the 200-week moving average and the 50-month moving average:
My guess is that for purely technical reasons we get a little bounce from here, with a green day for bonds and a red day for financials tomorrow.
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VGLT is down 1.5% premarket. An intraday bounce to above the EMA support levels is still possible, but this premarket move does not inspire confidence that support will hold. Looks like we may just drop straight through this support.
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Working on an intraday bounce, seems like.
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Treasury yields briefly surpassed the S&P 500 dividend yield today, making it arguably more likely that we'll see some rotation out of equities and into bonds for safer yield.
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Took a few days, but we have indeed seen a significant bounce from the 200-day moving average level. Makes me wish I had bought with more conviction; I only picked up a couple shares.