The TradingEdge

[jxyzobrien]

INTEREST RATES AND PRICE EXPANSION

Here is a chart of interest rates (TNX 10 year rates).
I used Wyckoff methodology and elliot wave methodology.
Notice how similar wyckoff and elliot are. The old saying is stocks follow bonds which follow interest rates.

Wykcoff analysis
On the weekly chart when an equity does 2 consecutive A to B
legs the 3rd leg either retraces the entire structure
or goes sideway marking time building cause to go higher (like a 4th wave). So i believe we are now doing a new
a A to B leg. So 31 + 10 = 41 would be the minimum
expansion (size of first leg up). Max expansion 16 to 47.
The longer the cause the bigger the effect. So this
pattern could continue going sideways for a while yet.

Elliot analysis
Sure do look like 3 waves complete and we are in the 4th.
Notice how symetrically the chart is. Notice how well RSI
and fast stoc. marked tops and bottoms. The 4th wave sure
looks like it completed an ABC and maybe finished.



http://stockcharts.com/h-sc/ui?s=$TNX&p=W&b=5&g=0&id=p19966278284&a=124124842