ZN Can Count as Complete

For our Evening Update, we would like to feature the Ten Year Treasurey Note Futures, ZN.

We have been watching the bonds closely but have not commented on them. Today we are taking a look at the weekly and the daily.

In looking at the weekly chart in another post, we traced back the ZN to June 2007 commenting on the comparison between bonds and the DJI. Although the common sentiment has been that bonds and equities trade inverse to one another, we noted that the charts show that to be true only on a short term basis.  We have been expecting bonds to complete their cycle wave 2 correction and  begin to selloff.

After a study of the daily chart on the ZN we feel with a high probability that the wave 2 counts complete and should soon follow the equities to new lows for the year. Although the count appears to remain finished, it is still possible   A hint of a rise in interest may come Friday when “Helicopter Ben” is scheduled to speak from the splendor of the Tetons in Jackson Hole after a meeting with the chairman of the EU central bank.

Our alternate count is that the final wave [v] is not yet complete and could potentialy rise to 127’190 where wave[v] equals wave [i] of C. Beyond that level there is also the potential that it could rise to 128’030 where C=127% of A.