TBT Pushing Towards Critical Resistance

The ProShares UltraShort 20+ Year Treasury (TBT) continues to trade firm, reflecting upward pressure on longer-term Treasury yield.

The TBT price structure is completing a large and powerful one-year base pattern that tells us a transition between the TBT bear and bull market is over, and that conditions are in place to support a directional up move.

While I do not know what the exact catalysts will be, my sense is that after a 33-year bear market in yield, the reasons for a counter-trend move will be many, but will mainly center around a loss of confidence in the efficacy of the United States Government as perceived by foreign sovereign and institutional investors, and not because the U.S. economy is experiencing runaway growth.

Whatever the reasons, the TBT is pushing up towards critical resistance at 68.00-70.00.