$TLT long-bond ETF is just breaking its 2019 uptrend WITH relative performance vs the $SPX giving up 6-months of performance breaking below the July lows. Relative performance often (not always) leads price with TLT 134 support looking vulnerable. pic.twitter.com/Ie5Q9MzWxt
— Robert Sluymer (@rsluymer) December 18, 2019
Today’s Chart of the Day was shared on Twitter by Robert Sluymer (@rsluymer). It’s a daily bar chart of the 20+ year Treasury Bond ETF, $TLT. The orange line below shows $TLT relative to the S&P 500 ($SPX). The impressive rally that Bonds had in 2019 looks like it’s coming to an end. Robert points out that $TLT is breaking down on both an absolute and relative basis. On an absolute basis, price broke below its uptrend line and is coming out of a tight coiling pattern. On a relative basis, $TLT/$SPX is breaking below the July lows. Robert explains that relative performance often leads price, which suggests Bonds are likely to experience further weakness.