The iShares Lehman Aggregate Bond Fund's goal is to grant investment results in general corresponding to the total United States investment grade bond market as defined by the Lehman Brothers U.S. Aggregate Index.
With the double dip in housing construction authoritatively underway and chronic troubles with the Euro, institutional traders are continuing to buy bonds.
AGG is at an all time high so target levels are hard to set at the present. What is understandable is the breakout that occurred on the weekly chart and how powerful the uptrend in this ETF truly is.
In May 2010 we had a significant breakout above the $105.65 level.
If you look at the daily chart you can see how accurate the 21 day moving average line has been in predicting a continuation of the uptrend. Four times the 21 day moving average line has been tested over the last 2 months and every time we have experienced a jump off the level.
In this episode I carry out technical analysis on the chart of iShares Barclays Aggregate Bond (AGG) in 3 time frames and illustrate for you why I rank AGG as being in a great uptrend.
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