Plunging interest rates (and Yellen’s little scheme from mid-March) have been the gasoline powering this rally. It is therefore important to watch for any kind of inflection point. The TBT (ultra-short fund based on bonds) is getting close to a crucial price gap, which in my estimation could be such a pivot point.
![](https://slopeofhope.com/wp-content/uploads/2023/11/slopechart_TBT-640x343.jpg)
Conversely, TLT itself is approaching a major price gap (that horizontal magenta line) which could be a key barrier to further price strength.
![](https://slopeofhope.com/wp-content/uploads/2023/11/slopechart_TLT-3-640x343.jpg)
If, months from now, we look back upon this and see a hard reversal away from this right triangle pattern, I believe that will go hand-in-hand with a resumption in equity weakness.