7-10 Year Bond

The 7-10 year bond has a similar technical setup to the 20+ long bond. A distinctive head and shoulders pattern (HS) has formed since 2008. The heavier volume on the right versus the left shoulder confirms the HS setup. A break of the neckline projects a minimum downside target of 75.

7-10 Year Bond ETF (IEF)


The COT money flow table illustrates the defense of critical neckline support on the 10 and 30-year (long bond) by commerical traders. I have elluded to these technical setups and money flows as the battle of decade due the importance long-term interest rates on the economic recovery.

COT Money Flow Table: