While the 10Y is compressing into a pennant, the 2 Year Yield presents a distinctly different macro structure on the weekly frame: a clean, parallel Bull Flag.
A critical level to watch is the ORANGE horizontal line. Ever since yields broke below this threshold, sustaining a trade above it has proven incredibly difficult. We are currently witnessing the 4th major rejection/exhaustion point around this zone after a brief poke higher.
Turning to the daily chart, momentum is visibly draining. The 2Y has slipped under its short term EMAs, the RSI has broken down into bearish territory, under 50, and the TTM Squeeze expansion bars are rapidly fading.
The technicals strongly point to a deeper daily pullback toward the lower flag boundaries, providing further confirmation that fixed income pressures are easing for the stock market.
A critical level to watch is the ORANGE horizontal line. Ever since yields broke below this threshold, sustaining a trade above it has proven incredibly difficult. We are currently witnessing the 4th major rejection/exhaustion point around this zone after a brief poke higher.
Turning to the daily chart, momentum is visibly draining. The 2Y has slipped under its short term EMAs, the RSI has broken down into bearish territory, under 50, and the TTM Squeeze expansion bars are rapidly fading.
The technicals strongly point to a deeper daily pullback toward the lower flag boundaries, providing further confirmation that fixed income pressures are easing for the stock market.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.