Interest rates over the past 10 years have bounced and created a series of lower highs. Is that trend of lower highs about to end?
Below looks at the yield on the 10 year note over the past decade.
Yields on the 10-year note hit all-time lows back in 2012. Did a double bottom in yields take place at (1) back in July? It's too soon to tell.
Members did long yields/short bonds (bought TBF) at (1), just in case a key low took place. Since shorting bonds in July, TBF is up nearly as much as the S&P 500 is for the full year.
Yields broke above 1-year falling resistance and have been tested the old resistance as new support at (2) and have pushed higher since.
Right now, yields are testing falling resistance. The next resistance level that is a huge test for interest rates is now in play at (3).