Tuesday, February 24, 2009

Treasury Tuesdays

Click for a larger image



Notice the following on the IEF chart:

-- Prices are consolidating after a move down from 100

-- Prices are still making lower lows and lower highs

-- The 20 day SMA is moving lower, while the 10 day SMA is about to move through the 20 day SMA.

-- The 50 day SMA is neutral

Bottom line: this chart looks to be consolidating. From a fundamental perspective, I'm guess there is a balance between the new debt coming on the market and concern about the stock market. In other words, new supply is getting trumped by "the sky is falling".