Friday, August 10, 2012

Morning Market Analysis; Bonds Finally Selling Off

The 60 minute charts of the major sectors of the treasury market show that prices have moved through support and are all now in downward sloping channels.

We also see it in the daily charts, all of which have bearish characteristics: declining MACDs, declining shorter EMAs (the 10 and 20), weakening RSIs and declining CMF readings.

The point of the above charts is that with the bond market now breaking long-term uptrends, money will be freed to flow into the equity and other risk markets.