$IEF Bond Rally Fading
Despite the market chatter of rate cuts by the Fed at the end of July, it seems that one area of the market that is not paying much attention are US 10-Year Treasuries ($IEF as a proxy).
After posting an "Evening Star" pattern on July 3rd, US Treasuries have been selling off since. As can be seen in the attached chart, the RSI has been showing negative divergence in relation to recent price rises, indicating that investor sentiment is fading, despite prices marching to record highs. Furthermore, the price is fighting hard to stay within the FR100 at $110.40, indicating that it could fall out of this area any day now.
Going forward, it appears that the rally in US 10-Year Treasuries is fading, and caution investors to take heed in this space
After posting an "Evening Star" pattern on July 3rd, US Treasuries have been selling off since. As can be seen in the attached chart, the RSI has been showing negative divergence in relation to recent price rises, indicating that investor sentiment is fading, despite prices marching to record highs. Furthermore, the price is fighting hard to stay within the FR100 at $110.40, indicating that it could fall out of this area any day now.
Going forward, it appears that the rally in US 10-Year Treasuries is fading, and caution investors to take heed in this space