The iShares Barclays 20+ Year T-bond ETF (TLT) are acting relatively strong today, the day ahead of the employment report. Purely from a technical perspective, all of the action off of the February low at 88.51 exhibits bullish form, which suggests that the net reaction (after the first 2 or 3 whipsaws) of the TLT's to the jobs data will be to the upside.

As we show in our chart, after holding key near-term support for two sessions at 90.70, today the TLT's have taken off from the support plateau, and climbed to 91.60 – in what looks technically like the start of a new upleg that should revisit the prior high at 92.06 on the way to a confrontation with the January-February double-top at 92.39/42. Could the TLTs be forecasting a disappointing Employment Report tomorrow?

 

Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com.