Elliott Wave Analysis of 30-year T-bonds (ZB futures contract) by Sid from ElliottWavePredictions.com. Click on the chart twice to enlarge.
I’ve been looking for signs that 5 waves up had finished in 30-year treasuries, and there are several technical clues that a potentially very significant top was put in on Thursday of last week. See the notes on the chart for explanations of the fibonacci targets, mid-channel resistance, and daily MACD divergence.
I’m still contemplating what the ramifications of a major trend change in 30-year treasuries would be on other items, but they are likely to be significant, and will try to post more about it if Thursday’s top holds. One item that should be affected is the USD/JPY currency pair, which is more likely to rally if the long-term trend turns to the downside in the price of bonds (upside in bond yields).
