Charts Not Encouraging for Bond ETFs

SEE MORE: A Bearish ETF Idea for a Trump Win

Alternatives to TBT include the ProShares UltraPro Short 20+ Year Treasury (NYSEArca: TTT) takes the -3x or -300% daily performance of the Barclays U.S. 20+ Year Treasury Bond Index. Additionally, the Direxion Daily 20-Year Treasury Bear 3X (NYSEArca: TMV) tracks the -3x or -300% daily performance of the NYSE 20 Year Plus Treasury Bond Index.

“Our main scenario considers the top to be in for the treasury bonds ETF (TLT) with the July 2016 high. If that is the case, then the Summer decline represents only part of the first leg of a new downward structure. A minor upward retracement from last week’s low could test the resistance levels shown on the chart, near 135.90 and possibly 137.60. After that, we would expect the decline to continue for a few more weeks before we would need to consider the possibility of a larger upward retracement,” adds See It Market.

For more information on the fixed-income market, visit our bond ETFs category.

Tom Lydon’s clients own shares of TLT.