10-YEAR US BOND YIELDS BREAKING DOWN - BEARISH for SPX
US 10-year Bonds have broken out of 2 triangles now and breaking down.
I count 5 waves in this massive triangle that formed between March 8th and June 24th with the final wave "e" itself being a triangle with 5 subways.
Remember - triangles - per Elliot rules - are found either as wave 4's, wave B's (middle of a correction) OR as wave E's as the final "wave" of another bigger triangle.
Since the breakdown out of these 2 triangles, the lower trendline of the larger triangle was tested at least 4 or 5 times from the underside, and each time was rejected - confirming the significance of this lower trendline and the subsequent breakdown in yields.
I anticipate this yield breakdown will accelerate to the downside with strong bearish implications for the SPX, Dow, etc.
An interesting observation is that the 10-year rose after making its low on March 8th - while the SPX made its low on March 23rd - 15 days later.
Bonds yields are not confirming the rise in the SPX since the 10-year broke down on June 24th and now we are 28 days later so the divergence is past due for the SPX to now play catchup to the 10-year and move down.
Cheers!
Cyrus
I count 5 waves in this massive triangle that formed between March 8th and June 24th with the final wave "e" itself being a triangle with 5 subways.
Remember - triangles - per Elliot rules - are found either as wave 4's, wave B's (middle of a correction) OR as wave E's as the final "wave" of another bigger triangle.
Since the breakdown out of these 2 triangles, the lower trendline of the larger triangle was tested at least 4 or 5 times from the underside, and each time was rejected - confirming the significance of this lower trendline and the subsequent breakdown in yields.
I anticipate this yield breakdown will accelerate to the downside with strong bearish implications for the SPX, Dow, etc.
An interesting observation is that the 10-year rose after making its low on March 8th - while the SPX made its low on March 23rd - 15 days later.
Bonds yields are not confirming the rise in the SPX since the 10-year broke down on June 24th and now we are 28 days later so the divergence is past due for the SPX to now play catchup to the 10-year and move down.
Cheers!
Cyrus
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.