tyler_sim

US01Y Treasury Head and Shoulders

Short
TVC:US01Y   US 1Y yield
Been watching the US01Y treasury as its chart patterns certainly are just as valid as normal stocks, but it really reflects the basis of the whole US economy being highly correlated to the fed interest rate.

Right now we have a very well-defined head and shoulders pattern after quite the straight line up from near-zero from the covid era.

The action this week in particular is interesting, in that it may be starting to reveal an initial tipping point.

Up until this week, I wasn't sure if it was going to be a head-and-shoulders fakeout leading to a continued uptrend in rates, but this looks more like the possible beginning of a new trend back down, **if this decline continues over the next few weeks...**

The 200-week SMA on the left screen would be a likely target, so somewhere between 2.5% - 3%...

Let's see!
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