After a devastating drop due to rising 10-year yields, the VGLT treasury bond fund is sitting right atop strong support at both the 200-week moving average and the 50-month moving average:
My guess is that for purely technical reasons we get a little bounce from here, with a green day for bonds and a red day for financials tomorrow.
My guess is that for purely technical reasons we get a little bounce from here, with a green day for bonds and a red day for financials tomorrow.
Note
VGLT is down 1.5% premarket. An intraday bounce to above the EMA support levels is still possible, but this premarket move does not inspire confidence that support will hold. Looks like we may just drop straight through this support.Note
Working on an intraday bounce, seems like. Note
Treasury yields briefly surpassed the S&P 500 dividend yield today, making it arguably more likely that we'll see some rotation out of equities and into bonds for safer yield.Note
Took a few days, but we have indeed seen a significant bounce from the 200-day moving average level. Makes me wish I had bought with more conviction; I only picked up a couple shares.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.