Friday, October 10, 2014

TNX 10-Year Treasury Note Yield Daily Chart Downward-Sloping Channels Positive Divergence Developing

The 10-year yield has gotten beaten up as traders run to notes and bonds for perceived safety sending Treasury prices higher and yields lower. The green lines show positive divergence in place for all indicators over the multi-month time frames, however, in the near-term few-day time frame the short red lines show weak and bleak behavior. So yield will likely play around in this existing range and then recover up to 2.36%, 2.40% and perhaps up to 2.46%. The weekly chart is agreeable to a bounce after the multi-week spank down starting last month, however, over the intermediate and longer term yields will likely continue moving sideways to sideways lower (weeks and months ahead). Note the 200-day MA above rolling over to the downside which is a very bearish signal (bearish for yields bullish for prices of notes and bonds). This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

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