TLT is the flight to safety trade in Treasuries...
This gives some more color on the market environment...
The opening gap up was met with a negative divergence sending TLT pulling back this morning in to a relative positive and then leading positive divergence on the 1 min timeframe which is now migrating through the timeframes.
On the 2 min the gap up this morning was also met by a negative "relative" (weaker divergence) divergence and followed by a leading positive in to the pullback, this is early action, but it is bullish action for Treasuries, typically not good for the market.
I was able to confirm this action in the inverse, leveraged short Treasuries ETF, TBT (It should show roughly the opposite signal).
TBT was leading negative badly in to the afternoon yesterday, this also confirms the market averages showing the same signal yesterday afternoon, it is leading negative even worse this morning and like TLT is seeing migration to longer timeframes.
The 3 min leading negative yesterday afternoon, price gapped down on that divergence and is in leading negative position with an intraday confirmation of the retracement.
Basically this is the start of a bad signal for the market from yesterday and continuing today.
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