One week into the new new and hope springs eternal. As the markets approach new highs and treasuries stage a recovery rally the trend remains bullish, although cautiously so, as we move towards Inauguration Day and what lies beyond. We did see a pullback in treasures on Friday and we'll see if that was a one off or the start of something bigger this coming week. That red day withstanding the TLT chart below shows the dramatic change in TLT sentiment (now overbought).
Despite the surge last week a closer look at the majors reveals considerable overhead resistance so the impact of earnings this quarter (now under way) may have more than the usual catalytic effect.....either up or down.