Risk On Bonds- Testing Key Breakout Levels, Will Stocks Follow?

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To be long and strong stocks, one likes to have confirming signals.

Above looks at four different bond funds, that one would prefer to be heading higher, if you are long and strong stocks.

As you can see most of these bond funds started heading south in 2014. About the time they did that, the NYSE struggled to make much upward progress over the past two years.

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Majority of these bond funds in the top chart, have rallied since February lows were hit. Now each of them has retraced around 38% of the declines over the past couple of years.

The “Risk On” trade for stocks, would like to see these bonds break above falling resistance and the 38% retracement levels.

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