Chart of the Day - Thursday, September 5, 2024

Patrick Dunuwila
September 5, 2024

Chart of the Day
 


🏆 Today’s Chart of the Day was shared by Evan Medeiros (@evanmediros).
 

  • Bonds continue to shape up for a potential breakout. The +20-year Treasury Bond ETF ($TLT) closed at its highest level of the year and is within striking distance of a 52-week high.
     
  • $TLT is trying to recover from its longest and deepest drawdown on record. After building a nine-month base, it's testing resistance from the December highs at $100. 
     
  • Bonds are also exhibiting relative strength versus stocks. $TLT is up +9.5% in the second half of the year, while $SPY is up less than +1%. In addition, $TLT is closer to a new 52-week high than $SPY.
     

Takeaway: Bonds are outperforming stocks and shaping up for a potential breakout. $TLT is still dealing with its longest and deepest drawdown on record, but it's testing resistance at $100 and trying to emerge from a nine-month base. 

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