US 10-year Bonds have broken out of 2 triangles now and breaking down.
I count 5 waves in this massive triangle that formed between March 8th and June 24th with the final wave "e" itself being a triangle with 5 subways.
Remember - triangles - per Elliot rules - are found either as wave 4's, wave B's (middle of a correction) OR as wave E's as the final "wave" of another bigger triangle.
Since the breakdown out of these 2 triangles, the lower trendline of the larger triangle was tested at least 4 or 5 times from the underside, and each time was rejected - confirming the significance of this lower trendline and the subsequent breakdown in yields.
I anticipate this yield breakdown will accelerate to the downside with strong bearish implications for the SPX, Dow, etc.
An interesting observation is that the 10-year rose after making its low on March 8th - while the SPX made its low on March 23rd - 15 days later.
Bonds yields are not confirming the rise in the SPX since the 10-year broke down on June 24th and now we are 28 days later so the divergence is past due for the SPX to now play catchup to the 10-year and move down.
also gold silver trending higher . Something is cooking , not sure where US Dollar is going .
cyrusgr8
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@SammyHas, "something cooking" is the best encapsulation of what is going on lol. Look at the 10-year compared to SPX on weekly / daily. The 10-year yield was falling soon after Christmas while SPX was still rising and topping all the way to Feb 19th. I know they say bond traders are the smartest and most sophisticated traders but what the hell. It is like they have a crystal ball. If want to be a conspiracy theories then can say "someone somewhere knows something" lol ;)
cyrusgr8
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@SammyHas, also bond yields topped June 5th while Dow and Russel peaked June 8th. Only Nasdaq and SPX being stubborn. It's almost like on June 5th bond traders were saying "ok enough is enough with this bullshit and down we go."