Post-PPI Pop In Yield Erased

During the last 30 minutes, the initial pop in 10-year YIELD from 4.44% to 4.48% in reaction to a hotter-than-expected PPI report has been erased. YIELD is now circling 4.42%, which represents the third attempt since the presidential election that YIELD has been repelled by the dominant 13-month down trendline (shown on my attached YIELD chart). 

That said, now we have to see if YIELD continues to move down toward a challenge of key nearest support at 4.36%, which if violated, will confirm a near-term top to the September-November upleg from 3.66% to 4.48%-- and project a correction in YIELD toward 4.20%-4.10%... 

From the perspective of PRICE, my attached TLT (20+ Year T-bond, ETF) shows a potentially meaningful near-term post-election Double Bottom at 89.46 (11/06) and 89.60 (11/14) that points the price structure toward a challenge of key resistance from 91.93 to 92.38... Last is 90.57...


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Veteran Wall Street analyst and financial author, Mike provides detailed and timely analysis and trade set-ups on a range of markets. Read more...

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