10-Year Yield: Short term Elliott wave count suggests that pullback to 1.542 at 9/28 ended wave X. The rally from there is unfolding as a zig zag where wave (a) ended at 1.77. The yields is now correcting the cycle from 9/28 low (1.542) before the rally resumes.
Near term, while bounces stay below 1.77, expect the yields to continue correction lower in wave (b) before turning higher again. We don’t like selling the proposed pullback and prefer buying the dips in 3, 7, or 11 swing as far as pivot at 9/28 low (1.542) stays intact. Buying the 10 year yields is equivalent to selling 10 year notes ($ZN).
