Near Term Trend: Positive
Fridayâ€™s Close: 125â€™195 Yield: 2.25%
UPDATE: We called the top in Yields eleven weeks ago (at roughly the 2.50% region).
As it related to the March futures, our proprietary resistance region at 125â€™040 was clearly violated this week as yields dropped more than 14 basis points in the last five trading days.
Technically, this move should measure to the 126â€™140 region. Any meaningful correction in Equities would be the impetus for a move beyond that point.