What the bond market is thinking

What the bond market is thinking

This is a chart of a bond index fund which tracks the 20 year Treasury bond. Symbol is “TLT” in stockcharts

It moves in inverse relation with the stock markets like Dow Jones etc as seen in the chart labeling.Whenever the index rallies DOW falls and vice versa.

Now let’s see what this thing is up to recently .the index has broken out of a long range bound period of activity and is headed towards its previous highs with good volumes being traded, the next set of resistance lies at 103.5-104 above which it can go to 110-115 which will be bad for the equity markets. On the down side the index has supports at 94-95 below which it can correct this fall if happens will be good for the equity markets.

So watch for 104 on the upside and 94 on the downside for equity market clues.

I came to know about this index through   http://blog.afraidtotrade.com/

It’s a pity we don’t have such bond index in India so that retail investors can channel their saving towards govt or corporate bonds.