TLT - At A Key Level

Last month I wrote about how the bond market tends to put in its seasonal low around the May/June time period. As you can see in the above chart of TLT, this market has made its low in June which is when I'd expect this market to bottom. The question that comes to mind is whether or not this is a minor bottom or the beginning of a new uptrend.

Right now this market is at a key level. There is a very significant trendline as well as a resistance level right here where the market closed. If TLT can clear this area by closing above 95.00, there is a good chance in my opinion that the trend will then have turned back up. As always we'll see what happens.