Near Term Trend: Negative
Friday’s Close: 124’250 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 125’04 is spot-on.