TNX 10-Year Treasury Note Yield Daily Chart Sideways Channels

The 10-year has received some love the last few days with traders seeking safety, moving money back into the note resulting in the yield pulling back down. Note how the yield respects the sideways channels, with the yield now receiving a spank down from the top rail of the large 1.45%-1.85% channel.  The 1.67-1.68% S/R level remains important moving forward and price likely wants to test this level.  The chart is moving out in a sideways profile, the positive divergence green lines bouncing yield higher while the negative divergence red lines smack the yield lower. The moving average lines are moving out sideways.  As the inflationists expect a 2% yield and higher to occur at anytime, and the deflationists expect the 1.4%'s to be revisited again, the 10-year may surprise everyone and simply travel sideways for the considerable future.

Watch the yield in relation to the 20 MA now at 1.707%; this will tell you a lot about the path forward since the yield willl either bounce or die. Failure of the 1.7%-ish should lead to the 1.67%-1.68% support level. At that time, yield will determine if it wants to move thru the tight white channel thru 1.55%-1.70%, or, if yield wants to recover, staying above 1.70%. Downward movement in yield means note price moves higher which occurs with equity markets selling off. Upward moving yields = higher equity markets.  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.