We’ve written about it time and again: when the 10-Year treasury note yield breaks its best respected MA support lines with conviction, then market participants may change their view on the yield and on the stock market.
Well, guess what – the yield knocks on the support lines again, after putting a new local lower high:
TNX ended last week right at support. The last yield rate closed at 4.213% while the 59-week SMA line printed 4.204%.
Together, the 59-week SMA and the 70-week SMA form the line in the sand.
As done many times in the past, the yield might bounce up from this support level. The other option, a break below support, is as good as the first option. If a break below support is in the cards, then as in the previous case, market participants will look for conviction.