Wednesday, December 14, 2016

FED Hikes, Market Tumbles, TLT Falls Off Ledge...12.14.16

As we warned yesterday, The inevitable FED could push TLT over the ledge, and that's exactly what happened. (SEE BELOW for last 3 hours of the day on 2 minute bars) as TLT plummeted from the R2 pivot all the way down to S2 on huge volume accelerating into the close.  Now we have to see if TLT will rapidly deteriorate down to 100 level support (down another 17%) or whether other instabilities in the markets will draw buyers to the already battered treasuries....and then there's the rising yield curve, which is still upslope.
There's always a danger is trying to catch a falling knife pattern and TLT may prove to be one of the more interesting case studies for market historians.
.chart courtesy of Schwab SS Edge