December 10-Year U.S. Treasury Notes posted an inside day, lower-close on Thursday. This is giving the market a slight bias to the downside on the opening
December 10-Year U.S. Treasury Notes posted an inside day, lower-close on Thursday. This is giving the market a slight bias to the downside on the opening today. The stock market will be the key today as to the direction of the market. If stocks rally, T-Notes are likely to weaken.
Daily December 10-Year U.S. Treasury Notes
Thursday’s close put the T-Bonds back inside the uptrending channel that has been guiding the market higher for several weeks. The upper level of the channel at 128’16 is resistance today. The lower level at 127’10 is the support.
The main range is 123’16 to 130’17. Its retracement zone at 127’00.5 to 126’06 is the next likely target should the selling pressure persist.
If the selling pressure is strong enough then look for an eventual break into a pair of uptrending angles at 126’02 and 126’00.
The tone of the market will be determined by trader reaction to 128’18. Overcoming this level will be bullish. A failure to do so is likely to indicate selling pressure.
James Hyerczyk is a U.S. based seasoned technical analyst and educator with over 40 years of experience in market analysis and trading, specializing in chart patterns and price movement. He is the author of two books on technical analysis and has a background in both futures and stock markets.
