TNX 10-Year Treasury Note Yield Weekly Chart

The charts are pricing-in the Fed decision this week which increased the projection for rate hikes next year from 2 hikes to 3 hikes. The daily chart wants to see a pull back in yields in the daily time frame which should begin any day ahead. The stochastics on the weekly chart above are overbot and negatively diverged in agreement with the daily chart so these indicators will conspire to push yields lower in the coming days or week or two.

The purple lines on the weekly chart, however, show long and strong indicators that want to see higher highs in yields after any pullback occurs. Considering the record-breaking parabolic jump in yields over the last couple months, and overbot RSI, the yield should moderate and the upper 2.74%-ish, may as well call it 2.75%, resistance, may finally hold this runaway train in check.

The daily chart wants the up in yields to stall for a few days or week or three and for yields to drift lower to the 2.30%-2.45% area. The size of the pullback will depend on whether or not the upside momentum is subsiding. The weekly chart, however, will want the move higher in yields to resume into that 2.60%-2.70% area, say , in January. Yields have a lot of upside momentum but many of the catalysts and market events such as Brexit, the US POTUS election,  the Italian referendum, ECB policy meeting and Fed policy meeting are all in the rear-view mirror. 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.

Note Added Saturday, 12/17/16: TNX is at 2.60%. The high yield last week was 2.62% and the low yield was at 2.42%.