US10Y - Could Be Breaking Down

1 בפבר׳ 2023

Charts potentially seem to be coming together in unison here and US10Y is key...

Yields are a major factor in either releasing or inhibiting risk-on asset markets, especially crypto.

If yields pump, stocks and crypto will dump, but if yields dump then it could be a bull market for crypto, stocks, and probably metals.

And here could be the first cracks that may reveal a top, though high volatility coming in just a few hours with FOMC announcement so we will see...

...

So firstly from the low of the previous wave down we now have 3 waves up.

The 3 waves are shallow with the 3rd printing a slightly higher high.

And so these 3 waves form an ascending wedge (bearish).

And it has fallen out of the wedge and also a collapse with a bearish momentum candle (large bodied) through the 4H 50MA (4 hour, 50 moving average).

If you've been paying attention you'll know that the first wave of a continuation pattern retracement is the immediate reaction to the previous dominant wave down and so often has a lot of bounce.

But the third wave is commonly more limp as it is less reflective and is where the impetus of the dominant trend is regaining control for the next wave down.

And so we have our Adam & Eve shapes for wave 1 and 3.

Notice the lower time frame SRP shakeout reversal patterns probing through wave 1 resistance with fast liquidity tapping wicks.

And the current candle we have probe upward that may now become a SRP when it closes, with large upper wick showing selling pressure coming in through the 4H 50MA landmark.

This could be the beginning of something but until the low breaks it is not confirmed and the correction could continue.

We look at this type of content every day 👍🏻.

Not advice.