Chart of the Day - Wednesday, December 18th, 2019

Today’s Chart of the Day was shared on Twitter by Robert Sluymer (@rsluymer). It's a daily bar chart of the 20+ year Treasury Bond ETF, $TLT. The orange line below shows $TLT relative to the S&P 500 ($SPX). The impressive rally that Bonds had in 2019 looks like it's coming to an end. Robert points out that $TLT is breaking down on both an absolute and relative basis. On an absolute basis, price broke below its uptrend line and is coming out of a tight coiling pattern. On a relative basis, $TLT/$SPX is breaking below the July lows. Robert explains that relative performance often leads price, which suggests Bonds are likely to experience further weakness.