The $IEF(7-10 Year Treasury Bond Fund) is heading for its best weekly close since April 24th. The index has been working trough a narrow range consolidation since the wild mid March panic action settled down later that month. The current pattern has allowed the IEF to work off an extreme overbought reading. As this week comes to an end the daily MACD is back to neutral while the IEF remained near the highs. A fresh rally leg will have plenty of room to run.
The BKX(KBW Bank Sector Index) is acting accordingly. The index is trading at fresh June lows as it extends the pullback from the June peak to 20%. By comparison, the SP 500 Index is approximately 6% below the June highs.