U.S Treasuries are confirming the "runaway" gap i mentioned here: (http://tinyurl.com/bs3rytk) & (http://tinyurl.com/dxtruqq)
TLT (Weekly)
- The bullish runaway gap pattern is confirmed with weekly prices closed firmly above 10, 20 & 50D-EMA + a positive MACD crossing
- Again, the chart pattern of (EMAs set-up) looks eerily similar to that in April 2011
- Conclusion - Expect quite a significant rally to follow-through in the treasuries with a reverse action in equities
The Small Caps.' leadership in the run-up for the past 4 months is looking that much closer in confirming the opposite.
IWM (Daily)
- 10D-EMA just crossed below 20D-EMA for the first time since Oct 2012!
- The previous two times i.e. Oct 2012 & May 2012 saw about -8.5% and -9% in the weeks following the cross
- Conclusion - This bearishness condition is re-affirmed with a broken 50D-EMA
IWM (Weekly)
- The previous 5 times (due to the constraint of this chart) when prices put in a red weekly bar below its 10W-EMA + weekly MACD negative crossing, corrections continued swiftly without failed
- We now have a "warning" signal where 10W-EMA just managed to closed on its 10W-EMA despite an intra-week breakdown
- Conclusion - Weekly closing below 10W-EMA + MACD negative crossing should confirm the break-down very soon
