Today I will start a series of posts on the ten year bond yield. The first chart will be the long term view provided by the FoxPulse5.
The chart shows the downtrend in yield that has been unfolding over the past number of years – some would say since 1981 actually. This posting is not to argue that that downtrend is over, but to point out that the FoxPulse did turn bullish on its long term basis (level 5) a year ago (green arrow). This signal occurred when the Delta – Y trendline was broken and remains in effect today.
Note the RSI (top pane) at the most recent Z pulse bottom. There was a large bullish divergence between this indicator and price. After the first bounce from that low the RSI moved to a value of 51. It then declined to 42 (black arrow); holding the support zone found in bull markets. We then had the bullish break of the Delta – Y trendline.
Today the Alpha pulse up from that low is over and so we are in a downward Beta pulse. I will look at the FoxPulse 4 chart next.
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