Fixed Income Update

• There was no change in the status of the Fixed Income asset class in D.A.L.I..
• The Broad Fixed Income Matrix remains quiet with no significant changes in rankings over the past two weeks.  The current top five are shown below.

• Asset Class Group Scores have seen some improvement in scores and score direction in the Fixed Income sub-classes. There are now eight classes above the 3-threshold, up from five last week. Out of 37 classes only five have a negative score direction and one of those is Inverse Fixed Income.  The classes that have average scores above the 3-threshold and in the "green zone" are shown below. Although they can still move higher note the OBOS% values have reached or are approaching 100%.  Watch for pullbacks in these areas if considering putting money to work there.

• The yield indices have pulled back and now are approaching areas of support on their charts.  After breaking a double top earlier this month, the 10 Yr Yield Index TNX is now testing support which includes its bullish support line at 22. We will be watching if the support line can hold.  The 5 Year FVX and 30 Year TYX have already violated their support lines.
• The one point charts of Long US Government charts, TLT and ZROZ, reversed back into Xs with Wednesday's activity. These charts have made a higher bottom and if they can exceed a previous top will complete bullish catapult formations.  The next resistance on these charts would then be their bearish resistance line.  This is an aggressive trade since the trend of these charts is negative.