Friday brought a lot of fear into the market. We saw breakouts in Gold and Treasury Bonds. We then saw them fail at key resistance levels.
Everybody saw these moves, but the reversal in these assets together send an important message. If these are fake moves are set to reverse course, it’s a very BULLISH message for stocks. Alternatively, if Gold and TLT get back above those old highs that would suggest a much more cautious tone is appropriate.
Here’s the charts in case you haven’t seen them.
Gold tried to, but failed to clear the February and March high. 1260+ remains heavy resistance.
US Long Term Treasury ETF TLT has formed a box range. It failed to break the range on Friday after the Jobs Report.
The same goes for the US Treasury 10 year note yield.
Trade ’em well