GoNoGo Charts suggest US10 yields will retest March lows
The stock market rally has faltered and perhaps with it is a decline in investor confidence. The reality of economic woes perhaps are sinking in.
When confidence falls, investors buy safe assets and the 10Y treasury yield is important to look at. As more investors start to buy this asset to protect their investment, price will go up and yield will go down.
During the so called corona rally we initially saw a bump in yields but this was not sustained as yields fell back and have been stuck in a consolidation pattern for just over a month.
The drop in volatility has been identified by the GoNoGo Squeeze as it climbed several times during this period.
The last price bar repainted in bearish purple and flagged a “NoGo”. If the move that follows the GoNoGo Squeeze is negative look for yields to retest the lows of March. Not a good sign for the stock market.
When confidence falls, investors buy safe assets and the 10Y treasury yield is important to look at. As more investors start to buy this asset to protect their investment, price will go up and yield will go down.
During the so called corona rally we initially saw a bump in yields but this was not sustained as yields fell back and have been stuck in a consolidation pattern for just over a month.
The drop in volatility has been identified by the GoNoGo Squeeze as it climbed several times during this period.
The last price bar repainted in bearish purple and flagged a “NoGo”. If the move that follows the GoNoGo Squeeze is negative look for yields to retest the lows of March. Not a good sign for the stock market.
