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10-Yr U.S. Treasury Notes (TY) Futures Technical Analysis – August 24, 2015 Forecast

By:
James Hyerczyk
Updated: Aug 24, 2015, 12:00 UTC

A massive sell-off in global equity markets overnight is helping to drive September 10-Year Treasury Notes to their highest level since April. Today’s

Daily September 10-Year U.S. Treasury Notes

A massive sell-off in global equity markets overnight is helping to drive September 10-Year Treasury Notes to their highest level since April. Today’s trade will be all about momentum and sentiment rather than prices.

Daily September 10-Year U.S. Treasury Notes
Daily September 10-Year U.S. Treasury Notes

T-Note traders will be reacting closely to the movement in the equity markets. If stocks continue to crash then look for T-Notes to be underpinned. A strong rebound rally by stocks will likely encourage profit-taking by T-Note investors.

Based on the current price at 129’03.5, the key area to watch is a combination of the April top at 129’05 and an uptrending angle at 129’02. Look for a bullish tone as long as this area holds as support. If upside momentum continues then look for a drive into the April 17 top at 129’16.5 and the April 19 top at 129’19.

The next upside target over 129’19 is a steep uptrending angle at 129’25.5. Crossing to the strong side of this angle will put the T-Notes in an extremely bullish position.

A failure to hold 129’02 and taking this angle out with conviction could trigger an acceleration to the downside with the next target coming in at 128’0.5. This price may provide some support initially, but it is also a trigger point for a steep break into targets at 127’20.5, 127’11.5 and 127’06.

Watch the price action and read the order flow at 129’02 today. This will tell us whether the bulls or the bears are in control. The volatility and direction of the stock market will dictate the direction and volatility in the T-Notes. 

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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