Ten year yield upturn here would make perfect technical sense. Pullback to ascending 50-day moving average after bearish divergence, just above Fibonacci support around 1.5%, RSI remains above 40. All the stars aligned…. now just need rates to go higher! pic.twitter.com/l0qMYg6jEC
— David Keller, CMT (@DKellerCMT) April 26, 2021
Today’s Chart of the Day was shared on Twitter by David Keller (@DKellerCMT). It’s a chart of the US 10-year Treasury yield over the past three years ($TNX). David points out that the 10-year yield looks poised to move higher after a brief pause. Not to mention, the Copper/Gold ratio, which is highly correlated to interest rates broke out to its highest level since 2018 today. The pause in rates over the past few weeks has allowed Growth to rebound relative to Value. However, if rates pick back up in the near term, Value will likely catch a bid once again.