The 30 year treasury futures contract is nearing some significant resistance after rallying all last week. True, it was pricing in a more dovish stance from the Fed, but with stocks nearing highs, we have to wonder when this may bleed into the bond market, continuing a more risk-on tone, and the overall bear phase.
We do appear to be in the 4th (corrective) wave of a bear Elliott Wave. We are hovering just below some significant resistance at 147'24. We can safely assume we are wrong if we break 147'10. This will depend on whether stocks can break (and maintain) new highs. Unless news turns for the worse, they postured well to accomplish this.
The Kovach Momentum indicators do suggest some upward momentum that has dissipated in the short term. However, this still paltry in comparison to the downward momentum we had in the third leg of the Elliott Wave. We are encroaching upon the upper bound of the Kovach Reversals Indicator suggesting that if a reversal was to happen, it would be soon.
We do appear to be in the 4th (corrective) wave of a bear Elliott Wave. We are hovering just below some significant resistance at 147'24. We can safely assume we are wrong if we break 147'10. This will depend on whether stocks can break (and maintain) new highs. Unless news turns for the worse, they postured well to accomplish this.
The Kovach Momentum indicators do suggest some upward momentum that has dissipated in the short term. However, this still paltry in comparison to the downward momentum we had in the third leg of the Elliott Wave. We are encroaching upon the upper bound of the Kovach Reversals Indicator suggesting that if a reversal was to happen, it would be soon.
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