TLT is actually 20+ year treasury bond fund, but it worked beautifully yesterday as a proxy for 30 year rates being the bond market was closed.
Here's what TLT is looking like now, there was an obvious set of divergences and the current one is suggesting TLT is going to see higher prices and thus far today's move is was as expected in the A.M. Update, short term intraday. The larger implications for the market again are not good.
This 2 min TLT chart from yesterday confirms the yields hints we were getting yesterday were right on at leat on the open as they have a positive divegrence at yesterday's lows sending TLT gapping higher this morning in to a small negative divegrence and a current leading positive divegrence that is building now.
A 1 min chart has more detail for intraday trade...
This is the gap up and almost immediate intraday negative in TLT, remember yields move opposite bonds/TLT and with the market.
Again there's a positive intraday divegrence building as seen above.
30 year Treasury futures are giving the same signal intraday...
Leading positive in to the a.m. decline.
The stronger 3 min TLT shows yesterday's positive and today's building positive migrating to longer timeframes telling us it;s building/getting stronger.
The big picture implications for the market are not good as the 60 min TLT chart is leading positive, TLT up, Rates down and the market following yields.
We see the exact same in 30 year futures on a 60 min chart as well
This is during a flat-ish range, a typical y accumulation area, this is a large and strong divegrence, it makes sense with the flight to protection in VIX futures (60 min) as this would be a flight to safety trade.
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