US Spread Yield vs SPXIf the US Treasury Spread Yield between 10 Year and 2 Year turns negative, SPX will fall AFTER the spread move to positive territory.
The spread is about to turn negative since the 10 year yield is about to break Resistance (from highest since Oct'18. The yield ended its Downtrend since middle of 2021. It's about to confirm Uptrend by breaking out Resistance at ~3%.
Once the yield confirm the Uptrend, I believe the spread will move into negative territory hence activating a Recession alert.
US10Y
US 10 YEARS BOND SET TO TUMBLE?From ichimoku and macd perspective, us 10 years bond yield is set to tumble. Could this lead to reversal for usd currency? Is this time to rise for usd's rivals? This could be a sign for usd reversal after rising so far this year.
Just bear in mind always : what comes up will come down.
US10Y Testing the 1D MA50 againThe U.S. Government Bonds 10 YR Yield (US10Y) has been on a pull-back in the past 2 weeks and is close to testing the 1D MA50 (blue trend-line) again. This held last time upon contact on May 26 and constitutes the first Support. We may have a Channel Up pattern in formation and the 1D MA50 sits almost exactly on its Higher Lows (bottom) trend-line. A 1D candle close below it, could open the way for the greater and much anticipated technically correction to the 1D MA200 (orange trend-line) which is untouched since December 29 2021.
That also sits currently on the Higher Lows trend-line that started after the December 20 2021 Low. If the Channel Up is validated again though, there are currently higher probabilities to see the bullish trend extending back to the 3.500 Resistance and if the 3.0 Fibonacci extension on the Channel breaks, aim the 3.5 Fib ext level. Notice how well of a buy entry the 1D RSI's Higher Lows trend-line has been since July 16 2021.
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Yields are pulling back but the move is likely corrective.US 10Y yields are pulling back after testing twice the 3.5% area but the move to the D/S is unfolding in a corrective manner for now (descending channel). 3% is the closest support area (also a psychological level) but a move towards 2.8% before resuming the upside is likely. We know it seems far but 4% is a level we expect the market to eventually hit while remaining in this bull run.
Bonds Edge HigherBonds have continued their rally, with ZN piercing through the 117's to hit our target at 118'04. A brief retracement has taken us back to 117'19, which was a previous target. The Kovach OBV has steadily risen, but has since leveled off a bit, which could suggest we are due for a retracement or some ranging. We should have support at 116'20 if we retrace further. If we are able to breakout, then there is a vacuum zone to 119'01, which is our next target.
XAUUSD and US10Y Comparison When we look at the correlation between Gold and US 10 Year Yields we easily can see an inverse correlation. When US10Y (Blue Line) increases Gold (Candles) decreases and vice versa. We can see these cycles in green lines. But every once in a while US10Y increases Gold only decreased till the EMA (White Lines) so we can easily say that EMA ($1811) is a big support for Gold.
Since FED saying that they going to increase interest rates more and more we can say that US10Y going to increase more. So that can make pressure on Gold for few months. Even though I don't expect it to fall to $1685 support because of the descriptions of FED, we can still consider that support just in case the possibility of FED to increase interest rates more than 50 pp.
BTC and US10Y / A negative correlation or a leading indicator ?We' re examining a correlation between BTC and US10Y
1. taking into account negative correlation between BTC and US10Y past 2 months, IF US10Y rejects at weekly resistance with doji candle, we'll see pump in BTC.
2. Considering that US10Y has broken multi months trendline and after retest will continue it's pump and it is a leading indictor ahead 1-2 months, we'll see BTC pump as well.
3. But if US10Y continues pump and negative correlation stays between them, after retest/short term BTC pump>retest 28K and maybe 35-36K / we'll see further drop in BTC
US10Y Trend-Following Long! Buy!
Hello,Traders!
US10 Yield is trading in an uptrend
And the price broke an important key level
Went up and is now retesting the broken level
Which became a support, and I am bullish biased
So I think this is a good opportunity
For a trend-following long trade
Buy!
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US10Y making H&S topping pattern with long weekly hammer?US10Y TNX may be topping out. It is both a measure of economic activity & inflation expectation. So is the economy starting to slow down or is inflation slowing down shortterm? It will take years for inflation to come down. If the FED can pull inflation down to at least 4% in a soft landing, it will already be a big success. Stagflation (rising inflation in a slowing economy) is still a big risk, which may take years to recover. A hard landing & aggressive rate hikes may be devastating for stocks but the economy may recover faster. More pain more gain.
A topping TNX will be good for TLT bonds & growth stocks. Next supports are 3% & the H&S neck at 2.7%. A measured move for H&S may take TNX to the yellow 2% upper pivot zone, retesting the blue wedge or maybe to retest the big red downchannel from 1981.
Not trading advice
US10Y bounced off the 2018 high and fell back to the 50MAThis is temporary until we see some serious inflation abatement. This pull back is flight from equities driven bonds catch a bid. iF THE REAL economy doesn't improve soon then the bonds only support is flight from worse outcomes. Also the fed balance sheet run off will support yields in the medium term as it constitutes a supply increase. So if inflation persists and liquidity dries up from fed tightening yields may move sideways.....and break the older channel. Go gold. I was long TBT for quite a while but that play is uncertain here.
US 10Y Treasuries Short Term BearishCurrently watching the 10Y Treasury Yield to hit resistance and pull back.
3% should be a big resistance level for now.
Short term Fibonacci target of ~2.6%.
This will be bullish for equities.
The recent pivot low broke structure to the left, where the low in late April was broken.
This is now a bearish retracement towards the highs, and will be watching for fib levels or a double top as resistance.
The bigger picture monthly chart (below) shows a big supply zone resistance at 3%. This area of supply has been hit, and a further reaction to the downside expected.
Also, the yield is stretched away from the monthly 21ema, with the 21ema currently below the 200sma.
The stochastic momentum index (SMI) is also on overbought zone with bearish divergence.
#TNX #US10Y 10 year yield at a top?So the 10 year yield has run hard on interest rate hike expectations.
However, as can be seen from the chart, the yield is currently about 93% above its 50 month moving average, the highest it has ever been...by far.
Using the TD indicator one can also see that the yields are potentially topping this month.
As can be seen from the Stochastic and RSI below, both are at major tops.
The yields and DXY priced in a more hawkish FED the last couple of days since we got the higher than expected CPI reading on 10 June.
Chances are that the FED will not be able to continue with higher interest rate hikes as this will crash the market.
So, the yields and DXY might have been running based on expectations but might revert quite a bit on actual release of FED interest rate decisions tomorrow.
US10Y Slowly upwards to the end of year, huge rejection after.The U.S. Government Bonds 10 YR Yield (US10Y) has been trading within a Bearish Megaphone with Higher Highs and Lower Lows since late 2013. The current 1W RSI pattern resembles that of the price Channel Up that in 1 year led to the most recent Higher High in 2018.
As a result, we expect a slow Channel Up towards the end of 2022/ early 2023, which will add to the current stock market uncertainty/ volatility, but then strong bearish reversal, if the Higher Highs trend-line/ top of the Megaphone holds. That can fuel a strong bullish reversal on the stock market (S&P500 index displayed in blue on this chart), as it happened in 2019.
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More tightening till Interest Rates match 10Y Bond Yields (US)If history is any indicator we shouldn't expect any pivots in monetary policy until 10Y Bond Yields come down to Interest Rates or Interest Rates hike to the former's level.
For 10Y Bond Yields to come down we need to see lower inflation or inflationary pressure.
US10Y Aggressive correction possibleThe U.S. Government Bonds 10 YR Yield (US10Y) has been trading within a short-term Channel Down on the 1D time-frame with the 4H MA100 (red trend-line) as the Resistance and the 1D MA50 (blue trend-line) as the Support. This is turning into a tight squeeze and whatever level breaks first, should give us the direction on the longer term.
A break below the 1D MA50 can see the price correct aggressively by filling the gaps on the lower MA levels, the 1D MA100 (green trend-line) and eventually the 1D MA200 (orange trend-line). In that case the 0.618 Fibonacci retracement level would be a fair target. This resembles so far the correction of April - July 2021, which bottomed below the 1D MA200.
On the other hand, I expect a bullish extension if the 3.205 High breaks towards the -0.236 Fib.
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US10Y Will Go Down! Sell!
Hello,Traders!
US10Y has retested a strong horizontal resistance
And we are already seeing a bearish reaction
So I think that the move down will continue
With the target being the broken falling resistance
That has turned into a support level
Sell!
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DeGRAM | US10Y short-term retracement US10Y has reached a major resistance zone 3.00% and it could go higher, resulting in a false break of that level.
There is an overbought condition on the D timeframe and US10Y is making lower lows on 4H.
We expect a short-term retracement.
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Long term or short term top for rates? $US10Y ChartMany people look at this chart and start their trend line in 1981. If you start it at the 1987 peak, you get more reactions including the one we just had. Is this time different? we closed above the 200 month moving average for the first time ever. If that is flipped as support then this time is different! I will also say that the inverse head and shoulders pattern played out perfectly. I am short term bearish here.