Thursday, August 7, 2014
Candle Quick: TYU4 (10 yr Tsy Future)
Yesterday’s price action nearly formed a bearish shooting star, but failed (by strict definition) to settle low enough. Instead, TYU created a bullish engulfing over the prior two sessions. The settlement yesterday was also the highest since late-May and as indicated in a note yesterday; ‘A settle through this level (125-13+) could set stage for more aggressive advance’. We may be seeing that now as TYU advances 12 tics from yesterdays settle. Finally, longer time-frame consolidation since early-May suggests there are little overbought conditions prevailing.