Fork Candles -
Part 2.Part 2 of the
"four candles" series concerns the chart above – the yearly Japanese candlestick of the
U.S. 30-year Treasury Bond Yield.
As we can see, the downtrend from 1989 remains intact at this juncture. 2020’s price action produced a very mild
"hammer", but it was not convincing given the fact that the close was not above the open. Also, the old resistance zone around
2.50% has held as resistance this year. It seems clear that, if we are to announce the death of the bond market, we really need to see the
30-year T-Bond yield above
2.50%.
Then, and only then, can we truly say that the world has changed.
