Wednesday, October 5, 2011

10 Year Note

There is a possible H&S Top forming on the daily chart for the December T-Note futures.  This market has had a huge run up this past year and is due for a correction.  Even if the H&S objective is met, the bull trend will still be intact so this could still be a good time to short this market for a quick profit.  First, we got bearish divergence on the RSI.  Prices made higher highs (Head) with RSI failing to do the same showing a slowing of momentum.  Today also saw a close below  the 10 and 20 EMA.  We have some big news ahead of us tomorrow and Friday.  Will this market finally see a correction? or will new highs be made again?

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