🏆 Today's Chart of the Day was shared by David Rath (@DJwrath).
- The 10-year Treasury yield ($TNX) is sitting at its highest levels since September as it approaches a potential inflection point around 4.20%.
- $TNX is threatening to emerge from a Three-Month Base after breaking out from a Six-Month Descending Channel on Friday.
- A decisive move through 4.20% would likely pressure growth stocks and other rate-sensitive areas of the market. A breakout that subsequently fails would likely be the most bullish scenario for equities in the near term.
The Takeaway: The 10-year yield ($TNX) is testing resistance near 4.20% after carving out a rounded base and emerging from a six-month descending channel.
