Tuesday, March 12, 2013
Morning Market Analysis
Yesterday, Marketwatch ran a story titled, Bond Rally Showing Fresh Signs of Fatigue. Above are three charts of several bond markets. On top we see the junk bond ETF, which broke a long-term trend in early February, but which has continued to move higher, except not it's using the previous support as resistance. The intermediate corporate ETF is in the middle while the long-term corporate ETF is on the bottom. The intermediate ETF has been trading sideways for about five months, while the long-term bond ETF has been moving in a slightly downward sloping channel for five months. Both have long-term declining MACDs and both are at important support levels.
While none of these is showing clear signs of a sell-off, the sideways movement indicates there may be some fatigue setting in.