10 Year US Notes Looking Lower

12. Juli 2017

10Year US notes can be trading at the start of a new bearish leg, after a completion of a higher degree complex correction within blue wave IV. Current sharp reversal was quite expected, as price formed an ending diagonal pattern within the final wave (C) of IV, which usually suggests a sharp reversal after its completion. That said current weakness can now represent red wave (1), part of a bigger bearish leg that can unfold in weeks to come. More weakness is now expected on the 10 year us notes, but be aware corrections will pop up during the process, and the first one can already be minor wave 4 of (1).


Ending diagonal

An ending diagonal is a special type of pattern that occurs at times when the preceding move has gone too far too fast, as Elliott put it. A very small percentage of ending diagonals appear in the C wave position of A-B- C formations. In double or triple threes, they appear only as the final “C” wave. In all cases, they are found at the termination points of larger patterns, indicating exhaustion of the larger movement.

structure is 3-3-3-3-3
a wedge shape within two converging lines
wave 4 must trade into a territory of a wave 1
appears primarily in the fifth wave position, in the C wave position of A-B- C and in double or triple threes as the final “C” wave


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