10-Yr U.S. Treasury Notes (TY) Futures Technical Analysis – August 25, 2015 Forecast

September 10-Year U.S. Treasury Notes are trading weaker during the pre-market session. The trade through yesterday’s low makes 129’28.5 a new minor top.

The new minor range is 127’06 to 129’28.5. Its retracement zone at 128’17.5 to 128’07 is today’s primary downside target. An uptrending angle also passes through this zone at 128’09.5, making it a valid downside target also. Since the main trend is up, buyers may come in on a test of this zone. This could produce a technical bounce.

Although the retracement zone could attract fresh buyers, since the market is reacting to the volatility in the stock market, buyers are only likely to come in if stocks resume their sell-off.

If buyers do come in to support the market on a test of the retracement zone then the next potential upside target is an uptrending angle at 129’06. This is followed by yesterday’s high at 129’28.5.

If the Fibonacci level at 128’07 is taken out then look for an acceleration to the downside. This price is also a trigger point for a steep sell-off into a major Fibonacci level at 127’20.5. This is followed by a pair of uptrending angles at 127’13.5 and 127’08.

Simply stated, watch the price action and read the order flow at 128’17.5. Trader reaction to this price will tell us whether the bulls or the bears are in control.