Near Term Trend: Positive
Friday’s Close: 125’195 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 125’040 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 126’140 region. Any meaningful correction in Equities would be the impetus for a move beyond that point.