TBT Continues to Mark Time...

While the ProShares UltraShort 20+ Year Treasury (TBT) (Yield) weakness, for the most part, is a negative reaction to today's economic data on personal income, construction spending, sharp auto sales declines, the overall chart pattern off of the June 26 multi-month corrective low at 34.00 remains relatively undamaged.

Only continued weakness in TBT that presses the price structure beneath important, near-term support at 35.65 to 35.22, will inflict meaningful damage to the post-June 26 set-up, and, as such, increase the likelihood of additional weakness that revisits and retests the late-June low-zone of 34/40-34.00.

Barring a breach of 35.65/22, all of the action off of the most recent rally high at 37.25 (7/07) should be considered the digestion period after the upleg from 34.00 to 37.25, which when complete, will leave the TBT poised for another upleg in the budding, new-bull phase that began at historically low rates established in July 2016.