10-Yr U.S. Treasury Notes (TY) Futures Technical Analysis – August 27, 2015 Forecast

September 10-Year U.S. Treasury Notes are trading flat shortly before the cash market opening. Based on the close at 127’29, the nearest support is a major Fibonacci level at 127’20.5. This is followed by a pair of uptrending angles at 127’17.5 and 127’12.

The daily chart opens up under 127’12 with the next target a main bottom at 127’06. A trade through this bottom will turn the main trend to down on the daily swing chart. This could trigger a fast move into the major 50% level at 127’01.

T-Notes are vulnerable to a steep break under 127’01 with the next targets a main bottom at 126’17.5 and a long-term uptrending angle at 126’11.

Based on the current price at 127’29, the first upside target is a minor Fib level at 128’07. This is followed by a minor 50% level and uptrending angle at 128’17.5. Overcoming this price cluster will put the market in a strong position to continue the rally.

T-Notes are still under the influence of the stock market. If stocks continue to firm then look for T-Notes to weaken. The recent rally by T-Notes suggests the move may have been overdone to the upside. This has put the futures contract in an extremely vulnerable position.