Mid Term Treasuries Break Down

IEF (Mid Term Treas) has flashed a double bottom breakdown, flipping its chart signal from bullish to bearish for the first time since February of 2011. The preliminary downside price target is 100.

Remember, falling bond prices equate to rising interest rates. Higher rates in turn often pose headwinds to income-generating securities such as REITs and utility stocks. That fact goes a long way toward explaining the very poor performances turned in these past two weeks by Intermarket Matrix. If bond prices continue to falter, expect to see some signal activity from that strategy in coming days/weeks.