Price is testing the neckline with mini-bull pennant below the neckline. A low volume day in the indexes as consolidation commenced after the covering rally yesterday. AAPL has led the bull rotation, with Meta finding support at $300. MSFT found supply at the 338 zone with 15!! tests of that resistance since it's loss on 11/23.
After finding support and a fourth Lower Low under 1.35, bond yields have had a mini bounce to produce a Bear Flag. A lower interest rate environment persists, will the volatility in bonds become a staple of the new markets?
The one area that is transitory is the messaging around whether or not inflation is in fact transitory. The new boss the same as the old boss, low rates for the win.
The 10 Year Bond Yield found resistance at the 8h 50 SMA; with support at the monthly 8 EMA. The 8-hour model's H&S Pattern Target Ruler's .35 offered a support wick as the low interest rate environment continues with a sub 1.5 reading.
A flight to safety with, a rejection of the monthly iH&S neckline, yields retreated, finding Golden Pocket support at the lower channel.
That wraps-up the trading before the break. The 10 Year Note is top watch as we round the corner to last month of the year. Today, after a pre-market ramp, the 10 year found resistance, fueling the relief rally for NAS. NAS found support, after recovering the Daily MBB.
Yields were turned away at the monthly H&S neckline (inverted view) to support a NAS and SPX Daily MBB Bounce. NAS resistance at the Daily 8 EMA.
Another rejection of this zone is needed to reverse the consolidation in the NAS. If this breaks watching for a back-test and the potential of a pressure valve to the upside for rates.
After an 11% move from the Higher Low on 11/19, the 10 Year Bond has gained and back-tested the channel .382. NASDAQ is finding resistance under the 2 hour 8 EMA. The Russell 2000 is in a downtrend with resistance at the 2h MBB.
On watch for a reaction to the larger monthly iH&S neckline and the NASDAQ and Big Tech. MSFT near All Time Highs with AMZN and FB in the middle of their ranges.
Teh 10 Year Notes Rally, after a series of confirmed Bull Flags, stalled at the larger Fibonacci scaffolding .35. The Monthly view is presenting a massive iH&S, with price at the neckline. A break of this key spot zone would put broader market consolidation on watch.
Welcome to Opex week; as the 10Y Note catches a demand zone off the H&S neckline. Watching the bullflag boundary as a proxy for the direction of NASDAQ.
After setting up a short framed iH&S the 10Y is testing the H&S neckline break. This CPI number was hot and a new paradigm will follow. For now more of the same with NASDAQ's dip being scooped up in the short run. NAS Res at the 2 hour MBB.
Found some buyers off the Golden Pocket of the H&S Pattern Break Target Ruler.
Need to move this chart to the top of the heap each day to keep the profile in mind for 2022. With BTC finding Institutional Support through Futures, ETFs, and Options the interplay between Big Tech, Inflationary pressures, the Bonds, and Crypto looks like a place to spend some time. For now, the cheap money looks to add fuel to the Rally. The PPI was in good...
The Market signaled confidence in Dovish Fiscal Policy through a confirmed Bear-Flag as the Monthly iH&S neckline was defended.
Hello traders! Today we will talk about 10Y US Notes and its negative correlation with USDJPY. 10Y US Treasury yields keeps pointing lower, as we see a bearish triangle formation within wave 4 correction that can send the price even lower for wave 5. If that's the case, then respecting correlations, USDJPY can see more gains for wave 5, as we also see a bullish...
All eyes on Chairman Powell today. Is the taper announcement today and is it priced in? Is the pain trade to upside? Will inflation worries reemerge? The bond yields should help tell us the story.