Bearish Candles Indicate Higher Yields

09/07/2010 9:46 am EST

Focus: FOREX

Thomas Aspray

, Professional Trader & Analyst

chart
Click to Enlarge

The strong rally in stocks last week put some pressure on interest rates as they moved a bit higher. Over a week ago, I noted the potential top in the T-bond futures, and last week’s action in the T-notes supports this view. The long tails on the weekly candle chart (see circle) suggest selling at the highs and the weekly MACD histogram has formed a negative divergence. It is still above zero but is declining. The key 38.2% support is in the 121 ½ area. Short term T-notes are oversold with resistance at 125 ¼.

Tom Aspray, professional trader and analyst, serves as video content editor for MoneyShow.com. The views expressed here are his own.

Related Articles on FOREX

Keyword Image
The Fabulous Shrinking Renminbi
09/27/2017 1:13 pm EST

As of August 2015, renminbi (RMB) in payments globally accounted for 2.8 percent of the total, the f...