Near Term Trend: Negative
Friday‚Äôs Close: 124‚Äô250 Yield: 2.40%
UPDATE: Seven weeks ago when yields were trading 2.35%, we stated, ‚ÄúNear term - Yields start to become extended (overbought) within the next 10-15 basis points (2.50%)‚ÄĚ. Yields traded up to 2.61%, but it lasted a Nano- second. In light of that four weeks ago we stated, ‚ÄúThe wild card- if Equities take a hit (near term profit taking) ‚Äď the T-Note futures could rally and an initial Yield retrace to 2.35 would play out‚ÄĚ.
Subsequently we have been on point‚Ä¶. Yields have retraced 22 points but Equities hang in there.
NOTE: OUR RESITANCE at 125‚Äô04 is spot-on.