Ishares Lehman 20yr (NYSE: TLT) Closes In On critical Support

May 7, 2008

Shares of the exchange-traded fund Ishares Lehman 20yr (NYSE: TLT) are closing in on a long term support level that must hold if the ten-month rally in bonds is to survive.

The $90 level has stopped two corrections since December 2007. If this level holds again, we could see another run for the highs, around $97 a share.

If the $90 level fails to hold though, and this is also the 50% retracement for the entire June 2007 to March 2008 advance, we could see considerably lower lows.

A break of support would set up an initial downside target for TLT of $88.20.

The Fibtimer.com (http://www.fibtimer.com) ETF Timing Strategy has a position in TLT.