BONDS

We are precariously close to the uptrend line in the bond market. So far today, we have a gap down that has not been filled. Over time gap down bars are not good setup bars for buys the next day, so I will probably be on the sidelines again tommorrow in this market watching.

I feel it is very important for this market to hold right here. This market has helped propel equites as well as keeping a reasonable floor under the housing market. This certainly appears at this point to be more than just a pullback especially with the commercials heavily short, but technically it is still holding on but by a thread.