US Treasury bonds may have some more downside before confirming a low on their pullback

Even though gold was not able to make a new swing high over the past couple of days, US Treasury bonds as represented by the TLT exchange-traded fund (ETF) had a solid down day yesterday. Checking the volume bars, this actually makes two "red" days on volumes higher than seen in the recent rise. This looks like bonds indeed have lower levels to test before putting in a low for the current pullback. If TLT moves under chart support from the prior swing low just under $91, then somewhat under $87 comes into focus as a c=a symmetry target. If TLT drops too low, then it increases the probability that its next rise upward will be only a bear-market rally setting the stage for much higher bond rates and much lower bond prices in the future. For now, we'll keep an eye on to see if TLT probes under its recent swing low of 94.33 and if so, whether it gets support around $91 or points toward that $87 level.