The large 6-week coil pattern in the Lehman 20-Year T-Bond ETF (TLT) hit its third coordinate on the high side last Friday at 100.00 off of the October 17 low at 93.02, and since has pulled back to this morning's low at 96.02, which represents a 60% correction of the 10/17-10/24 upleg. The strength off of 96.02 suggests strongly that the pullback is complete and is turning to the upside to enter a new upleg that will retest and likely hurdle resistance between 100.00 and 100.86 -- on the way to 102.00. Continued vulnerability of the overall stock averages to lower prices -- because they have not so far confirmed their October lows -- as well as fears about the balance sheets of GS and MS, among ongoing global recession and banking concerns, argue for another upside run for the TLTs.



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.