$TLT May Support One More Period of Weakness in Equities

My view on $TLT (here) is that it’s embarking on a large 5-wave decline of cycle degree. Today’s weakness is so far supportive of that because the move looks impulsive. But, it’s not going to go under $130 in a straight line. That 5-wave cycle C will of course be composed of it’s own 5-waves (which will each be composed of 5-waves, turtles all the way down). Zooming in, today’s action looks to have completed a 5-wave move. So we may expect a 3-wave counter-trend corrective rally in the direction of the orange box.

This is consistent with my thought that renewed weakness in the equity markets is possible.

TLT

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