Bond (fixed-income) ETFs have been taking a beating the past few weeks, as evidenced by the sharp reversal in $TLT off the highs of April. If $TLT cracks support at $115 - $116, it could be headed for the $110 area. With interest rates climbing, sitting in bonds while the market climbs higher will be a tough pill for many to swallow:



After a false breakout to new highs within the past few weeks, iShares MSCI Thailand ($THD) has pulled back to the rising 10-week MA, which is almost the same as the 50-day MA on a daily chart.

For the setup to remain bullish in the short-term, the price action should hold at or around the 10-day MA. A pullback to the prior base low would not kill the setup, but the price action at that point would need several more weeks of consolidation before a bullish buy pattern could emerge:



iShares MSCI Malaysia Index ($EWM), which we initially pointed out in yesterday's commentary as a pullback candidate, has broken out to new highs on the monthly chart:



On the shorter-term daily chart, we see the price action has pulled back to the rising 20-day EMA. If the price action holds above the 20-day EMA, we could then see a break of the short-term downtrend line within a few days:



Ideally, one more day up, followed by one or two days sideways (including a test of the 20-day EMA) would produce a low-risk entry point into $EWM with partial share size.

Deron Wagner is the Founder and Head Trader of both Morpheus Capital LP, a U.S. hedge fund, and MorpheusTrading.com, a trader education firm.