US Markets At Resistance. Treasuries Still Suggest A Cautious Approach

The recent pullback in treasuries occurred at a fairly expected level where price met resistance an the top of the downtrend and at a zone of polarity. Whilst this daily chart hasn't confirmed the breakout above the channel, note the divergence at the lows and the high RSI confirming the strength of the move.

However, zooming out to the weekly, bigger picture chart, shows a failed breakdown and the longer term downtrend already having been surpassed.

Given this, its not inconceivable to expect the rally in treasuries to continue which I would likely have negative consequences for risk assets.

Many US indices and ETFs are at or near significant levels of resistance also. I would continue to proceed with caution and not looking to be adding risk on the long side at this stage.