TNX 10-Year Yield Daily Chart H&S Patterns

Note how the blue line H&S achieved its target at 27.  An additional H&S (black lines) uses the 29 level as a neck line. Thus, head at 37.5, neck at 29.0 is a 8.5 difference, thus, 29.0-8.5=20.5. Target achieved. The positive divergence over the last month will help yield move sideways thru 195-235, 1.95%-2.35%, over the short term. Over the weeks and months ahead, however, lower yields under 1.95% are expected.This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here or any links connected to this information. Consult your financial advisor before making any investment decision.

Note Added 9/5/11 at 8:05 PM EST: 10-year yield falls to historic low of 1.92%.

Note Added 9/6/11 at 5:56 PM EST:  The 10-year yield fell to 1.92-ish at the low with a closing print of 1.98%. The daily chart shows constructive positive divergence so this may have placed some temporary lows. Stay on guard, however, since longer term, lower yields will be explored, probably as the Autumn leaves fall.