10-Yr U.S. Treasury Notes (TY) Futures Technical Analysis – October 24, 2014 Forecast

December 10-Year U.S. Treasury Bonds finished lower on Thursday after briefly touching a key 50% level.

The key area to watch today is 127’01 to 126’31. This is where a downtrending angle from the top crosses a 50% level. The market was straddling this zone on the close last night so the direction of the day may be settled on the opening.

On the downside, the first two targets are a pair of uptrending angles at 126’22 and 126’20. Watch for a technical bounce on the first test of these angles. A failure to hold here could trigger a further decline into the Fibonacci level at 126’04.5.

The tone of the market today will be determined by trader reaction to the cluster at 127’01 to 126’31. Look for an upside bias on a sustained move over 127’01 and a downside bias under 126’31. Try to avoid getting chopped up while traders are deciding which way they want to take the market.