Near Term Trend: Negative
Fridays Close: 124250 Yield: 2.40%
UPDATE: Seven weeks ago when yields were trading 2.35%, we stated, Near term - Yields start to become extended (overbought) within the next 10-15 basis points (2.50%). Yields traded up to 2.61%, but it lasted a Nano- second. In light of that four weeks ago we stated, The wild card- if Equities take a hit (near term profit taking) the T-Note futures could rally and an initial Yield retrace to 2.35 would play out.
Subsequently we have been on point
. Yields have retraced 22 points but Equities hang in there.
NOTE: OUR RESITANCE at 12504 is spot-on.