ZN1!
Bonds SlumpBonds have sold off into the mid 118's after smashing through 119'01. We have gradually drifted up from there, but are meeting resistance at 119'01. It will take some momentum to break through this level and right now it does not seem that ZN can muster the strength. The Kovach OBV has edged upward, but appears quite weak. If ZN is able to somehow break out, then 119'23 is the next target. If we sell off further, then 118'04 is the next target below.
Bonds Pick UpBonds have found support and made a run for higher levels. The ten year dipped 119'23 into the 118's, finding support just above our level at 118'04. We then saw a rebound to 120'14, which we have been identifying as the next target after 119'23. It will take some momentum to break this level however, since this is a relative high from back in April. We are already seeing steep resistance here confirmed by a red triangle on the KRI. The Kovach OBV is gradually trending up, but is a oscillating with the dips, suggesting we need to see more momentum to come through to sustain the rally. If we selloff further, then we should see support at 119'01 then 118'04.
Big resistance ahead of 10 Year T-notes future After hitting a major weekly suport level, the market starts to break the downtrend structure on H4, making a new higher low, that can show a possible reversal of prices since stocks are going downtrend and investors are going for the treasury notes and bonds...
Bonds Benefit from Risk-On OutflowsBonds have picked up, breaking through several of our upside levels. We set a target of 119'23, and that is exactly the level we've reached. We are seeing signs of resistance here from several red triangles on the KRI. The Kovach OBV has picked up however, but it is doubtful momentum will take us much further, given the market conditions. If we are able to break out again, then we should see resistance at 120'14 and 121'00, who relative highs. From below we will have support from 119'01 and 118'04.