The US Oil Trust (USO) appears to have finally inflicted some initial technical damage to the extreme near-term pattern, which now projects prices to continue higher.
For the past week, the Treasury bond ETF (TLT) has embraced the slower growth scenario, inspired no doubt by the very negative data coming out of the housing sector.
The Housing Starts data have triggered a sharp recovery in the TLT's, suggesting that if bond market investors were not sure that the housing sector might have hit its lows, now they have more conviction that it has not.
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