My near- and medium-term work both indicate that the sharp correction from the December 28 high at 50.65 to yesterday’s low at 49.15 in the ProShares UltraShort 20+ Year Treasury Bond ETF (TBT) has the right look of a completed correction within the larger, dominant uptrend off of the November 30 low at 44.26.

If my work proves accurate, then the TBTs have started a new upleg today and should be heading for a test and hurdle of 50.65 on the way to 52.50-54.50 thereafter. Could such an upmove coincide with a reaction to Friday’s Employment Report for December? Definitely. Friday could be a defining moment for the long end of the bond market -- and the TBTs.

Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com.