Market Update ($TNX), 2009.07.21

21. July 2009
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$TNX Weekly:  $TNX is the 10 Year T-Note Yield.  I overlayed the S&P Index ($SPX, red line) to show the divergence that occurred at the 2007 top and the recent 2009 bottom pivot.  As you can see below, the 10yr topped 3 months prior to when the $SPX topped in October.  Similarly, the 10yr bottomed 3 months prior to the $SPX bottoming in March.  Perhaps this type of movement can give us some visability in the future?

It is interesting to see the $TNX follow fibonacci levels just like everything else.  By taking an extension of the "wave 1" off of "wave 2" we have a reaction at the 1.382 level and the 2.618 levels.

Lesson

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