VIEW RETAINED FOR A BULL PHASE THAT IS MATERIALISING.
The long-held view of an impulsive 1,2,3,4,5 bear to T1/T2, followed by a meaningful downside to S2, is materialising.
The W,X,Y-type bull phase is closing in on the initial S1 level to complete phase W.
An R0*/S1 consolidation phase will follow to form phase X. The Final downside to S2 should complete the bull trend.
A longer-term base is expected to contain market action between R0* and S2, as highlighted by the shaded area.
The cyclical bear trend to new highs will only re–emerge on completion of the current base building.
Conviction is medium to high.
The yield on the 10-year Treasury bond is often seen as a barometer of the overall health of the US economy. A rising yield can indicate expectations of stronger economic growth and potential inflation, while a falling yield might suggest economic slowdown or deflationary pressures.