Short Term Trading Member Forum

[techcharter]

10 US Teasury Yields E-wave

http://stockcharts.com/h-sc/ui?s=$TNX&p=D&yr=0&mn=6&dy=0&id=p82516202215


Since the April 2010 high on the yield chart, the yield on the 10 yr US Treasury has been in a downtrend. The e-wave structure and the MACD are indicating rates are about to turn up.

The April high to May low is motive (wave a zig)
From the May low until about June 21 a triangle (Wave b) appears. Triangles signal one more wave of the same degree is left in the larger wave.

From June 21 until July 1 is motive (wave c zag). The alternate count for wave c is ending diagonal.

The MACD has been trending higher from the end of June as the yield has fallen. This is a divergence and a warning of trend reveral. The stochastics gave a "buy yield" signaal this week.

Early confirmation of a reversal would involve breaking the upper channel. An e-wave confirmation of reversal would be the yield rising above 3.308%.