November 17, 2010
Shares of ISHARES Barclays 20+ Yr Treas (NYSE: TLT) rallied on Tuesday, November 16. But they have already broken below an important support level.
TLT closed decisively below $95.45, the 61.8% retracement support level for the entire April to August rally.
The 61.8% level is considered the critical one. A decisive break below typically results in continued declines to the prior lows, in this case that is down at below $90.00 a share.
Should TLT advance and close decisively above $98.00 a share, this forecast would be in doubt. But until such a move materializes, we are looking for lower lows ahead for shares of TLT.
The Fibtimer.com (http://www.fibtimer.com) ETF Timing Strategy does not currently hold a position in TLT.
Disclosure: The Fibtimer.com (www.fibtimer.com) ETF Timing Strategy does not currently hold a position in TLT.