10-Yr U.S. Treasury Notes (TY) Futures Technical Analysis – October 13, 2014 Forecast

December 10-Year U.S. Treasury Notes posted a lower-high, lower-low, but a higher close on Friday. The move made 126’28.5 a new minor top.

The market remains inside an uptrending channel with the upside trend line 129’16 and the lower at 126’10. This is a bullish formation as long as the support line holds.

If the rally continues to follow the uptrend line higher then look for a test of the May 1, 2013 top at 127’13 within the next two days.

A break through the uptrend line at 126’10 will be the first sign of weakness, but taking out the 126’07 low is likely to trigger an acceleration to the downside with a pair of uptrending angles at 125’18 and 125’16 the next key downside targets.

The tone of the session will be determined by trader reaction to 126’10.

The futures markets are open, but today is a U.S. bank holiday so watch for lower than average volume.