Two formations are shown in the first chart: The 2 squares from the 2010 decline AB and the 2010-2011 advance BC
- The blue fan lines generated from the AB square indicates major support just above 125 with secondary support shown by line AE.
- Note that the second square terminates at point E--which is in the month of August.
- The radius BC = radius BD.
- Points E & D could mark the time period of a major change in trend. (August 2012). Note how the arc C-D contained price advances during the decline of 2011. This cycle terminates in August.
- The conventional technical chart is showing that TLT is nearing over-bought and could be showing a RSI non-confirmation.
- The decline of 2011 BA is equal to BC. Point C is near the recent high and subsequent bearish engulfing line. AB = BC
- 125 is important support since it was the 2011 High and recent corrective low.
- The DMI is showing signs of exhaustion and is in a position to indicate the end of a major bullish trend.
- Support is at 125 and 110.