Wednesday, August 19, 2015

Ten Year Treasuries Add to Bearish Technical Developments

Ten year Treasury future formed a bearish ‘shooting star’ on Tuesday and the body of that session lies within Monday’s bullish advance, creating a two-session ‘bearish harami’.  On generally soft price action yesterday, open interest rose in TY by 16K (ED’s +82K, TU +11K, US +5K, FF +1K, but FV and WN off 2K and 6K). 

An upward sloping trend line dating from mid-July intersects trade today at 127-08+.  A settle below that level could encourage some selling.  Otherwise, a settlement above 127-19+ today would create a bullish engulfing and suggest a better test of nearby resistance.  

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