Short Term Trading Member Forum

[techcharter]

10 Yr Treasuries Still Island Reversal.

The sharp drop in bond yields this was partially retraced by the end of the day. This contrasts with the equity markets which dropped and kept sliding without a significant pullback.

The following chart shows the 10 yr Treasury yield and SP500. Over the last 10 days they have moved in tandem. Today you would expect a flight to quality in US treasuries and gold. The unexpected happened. THEY ALL SOLD OFF. This is a sign of liquidation, and therefore, DEFLATION. The island reversal was a major signal. Now I'm looking for e-wave confirmation. A yield rally above 3.75% would place the odds in favor of a bottom. A strong confirmation would be a clear 5 wave pattern to the upside.

http://www.marketwatch.com/tools/quotes/intchart.asp?submitted=true&intflavor=advanced&symb=tnx&origurl=%2Ftools%2Fquotes%2Fintchart.asp&time=18&freq=9&startdate=&enddate=&hiddenTrue=&comp=Enter+Symbol%28s%29%3A&compidx=SP500%7E3377&compind=aaaaa%7E0&uf=7168&ma=1&maval=50&lf=1&lf2=4&lf3=0&type=2&size=3&optstyle=1013