Sign of ''THE'' Bond Top Taking Shape?

March 10th, 2013

by Chris Kimble

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The death of the bond bull has been discussed many times for the past few years. The 10-year note is up against a 10-year resistance line and may be forming a topping pattern over the past 15 months.

Key to this pattern is how much selling pressure takes place around the neckline at (1). This asset has seen record inflows for years, so watch this pattern to see if the worm is turning!

Is this "THE" top in bond prices? Price action at the neckline will give us some clues about this important question!

The results of the pattern will have ripple effects for a big chunk of many of portfolio allocations.

Trouble in Muni Bond Land?

Muni Bond ETF (MUB) is breaking its second support line and its 200-SMA line at (1) this past week. Is it doing something other bonds are not?

Diversified Bond ETF (AGG) is close to breaking support of a multi-year rising channel in the lower right chart.

Do bond price breakdowns reflect good signs of economic growth? Stay tuned!

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