Near Term Trend: Negative
Fridayâ€™s Close: 124â€™250 Yield: 2.40%
UPDATE: Seven weeks ago when yields were trading 2.35%, we stated, â€śNear term - Yields start to become extended (overbought) within the next 10-15 basis points (2.50%)â€ť. Yields traded up to 2.61%, but it lasted a Nano- second. In light of that four weeks ago we stated, â€śThe wild card- if Equities take a hit (near term profit taking) â€“ the T-Note futures could rally and an initial Yield retrace to 2.35 would play outâ€ť.
Subsequently we have been on pointâ€¦. Yields have retraced 22 points but Equities hang in there.
NOTE: OUR RESITANCE at 125â€™04 is spot-on.