Short Term Trading Member Forum

[techcharter]

Bonds' Ewaves Getting Exciting.

Today's rally in 10 yr TSY prices gave the market more air for the next sudden drop in prices. The wave structure looks like a fully completed zig-zag wave 2 of extended 3. The earlier retracement looks like a zigzag too. It is unusual, Prechter would say never, for waves 2 and 4 to both be zig-zags. This favors a wave 3 extension taking place. The futures market has a slightly downward bias that has broken the zag's lower channel support line.

http://charts.barchart.com/chart.asp?sym=TYU4&data=Z30&date=071804&den=HIGH&evnt=off...


Now switch to the yield chart for other technicals.

The MACD is giving a yield buy/ bond sell.
The Bollinger bands have slowed it's rate of pinching and is about to blossom. The yield penetrated the upper band a second day in a row, and with a relatively tight range for the day.

However, the stochastics indicate the yield is overbought, the bond oversold. Long trends will produce over--- conditions for a long time.

http://stockcharts.com/def/servlet/SC.web?c=$TNX,uu[w,a]daclyyay[db][pb50!d20,2][vc60][iLp14,3,3!La1...