Bonds (TLT) Generate Trend Model Neutral Signal on Breakaway Gap

Yesterday an Intermediate-Term Trend Model Neutral signal was generated on TLT, the ETF we use to calculate our official Trend Model signal. This combined with a breakdown from the congestion zone and a what appears to be a breakaway gap tells us there is likely more downside to come for bonds.
Let's look at the six-month bar chart for TLT. We can see that the Trend Model Neutral signal generated because the 20-EMA crossed below the 50-EMA (seen best in the thumbnail). It was a Neutral signal and not a SELL signal because technically we consider TLT to be a "bull market" because the 50-EMA is above the 200-EMA. A Neutral signal implies that you go into cash or fully hedge. A SELL signal on the other hand would be a possible shorting opportunity. On the TLT chart there are also a few gaps that I'd like to point out.  (more)

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