Hey Guys, Fingers crossed!! I Hope this Right shoulder gets complete on monday and again Bonds may get to hell. Reversal in bonds may happen from now on if this pattern gets rightfully completed. So, Monday is a very crucial day to decide what the stock market will be going to perform in the coming week and month.
Hope you all would have liked the analysis. Also...
In the words of Sir Ray Dalio,
"Due to the lack of free-market buying of US debt, the central banks had to buy it and had to print a lot of money to buy it with so much so that they drove rates down to “artificially” low levels, which “artificially” supported financial asset prices. Now, there’s just so much money injected into the markets and the economy that...
If you look at the 10 Year Bond Yield Charts, corresponding to the US 10 Year Treasury Notes chart, it is currently just in the process of retesting the breakdown. As long as US Bond Yields does not sustains above 1.45%, the major trend is down.
US 10 year bond yield is in a downward channel for last 35 years. For past 6 months they have been rising. As per the chart they may go as high as 1.45 - 1.60 before starting another downward movement.
Disclaimer: For educational purposes only.