Even though it’s hard for me to imagine some kind of “shock event” from the pre-open jobs report this Friday, I look forward to seeing how the market – – particularly the bond market – – reacts. The reason is that, in spite of the recent rally lately, the bond market (represented below by way of TLT) is still sporting a very good right triangle reversal pattern, and provided we stay beneath that horizontal line, it stands every good chance of more serious diminishment in price.
![](https://slopeofhope.com/wp-content/uploads/2023/08/slopechart_TLT-4-640x344.jpg)
Looking at this upside-down, by way of the TBT (which is the ultra-short ETF for bonds), we can see the very bullish pattern (which, being inverted, means a bearish pattern for bonds) shaping up. I’ve drawn a supporting horizontal line here to illustrate what I believe is key support for TBT, which is a good proxy for what interest rates are doing.
![](https://slopeofhope.com/wp-content/uploads/2023/08/slopechart_TBT-3-640x344.jpg)