September 22, 2023

By Nigam Arora & Dr. Natasha Arora

To gain an edge, this is what you need to know today.

Classic Gap Down

Please click here for a chart of 20+ year Treasury bond ETF (TLT).

Note the following:

• The chart shows a classic gap down in bonds.  This is negative for stocks.
• The chart shows heavy volume on the gap down. This indicates conviction in selling bonds.
• The chart shows bonds have fallen under the support/resistance zone.  This is negative.
• The chart shows RSI divergence.  From a technical perspective, this signals a potential reversal in bonds.
• Back in 2020, The Arora Report was the first to call that the long bull market in bonds was over and inflation would rise significantly.