With the equity market attempting to rally, or at least fighting off negative territory this morning, the Lehman 20 Year T-Bond ETF (TLT) is experiencing a bout of profit-taking. However, the pattern and the underlying momentum gauges argue that the weakness in the TLTs is corrective, which when complete, should resolve to the upside in another powerful upleg that propels prices towards a test of the prior high at 96.36.



Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com, a real-time diary of his technical chart analysis and trading alerts on all major markets. For more of Mike Paulenoff, sign up for a free 15-Day trial to his MPTrader Diary by clicking here.