Ten Year Potential Rising Megaphone Top (Red) within Rising Megaphone Top (Purple)
The U.S. 10-Year T-Bill is failing to make an obvious megaphone retrace in a way that would usually mean it’s forming a rising megaphone top (red on chart).
A move through its major megaphone VWAP (purple horizontal line) would cancel this set-up.
Basically if this hypothesis is correct you’d expect the 10-year to form a mini Sornette bubble set-up down here for a melt-up to a new high and a bit of a breakout through the red rising megaphone top.
Then you’d expect a move back to the purple megaphone VWAP area and a little lower than the first touch on the bottom of the red rising megaphone.
If you see a megaphone down there, and it breaks out upwards, you’d expect a melt-up to the purple rising megaphone top.