A large rise in U.S. Treasury yields is pulling global bond yields higher across the board and boosted the dollar, while stocks fell in response. The 10-year Treasury note is now at its highest level since mid-2011, up 7 bps to 3.23%, as recent comments from Federal officials signaled more rate hikes are on the horizon. Economic figures pointing to strength in the U.S. economy are also causing markets to reassess how far the Fed's tightening cycle will go.
/ESZ8 Value: YVAH 2944 YPOC 2940 YVAL 2931
/ES Plan: Yesterday market closed bimodal (LIS 2936) but overnight looks more bearish (GBT 2911), moving below yesterday's range. We're moving into 2918-2936 auction range, so lower edge 2918 will be key, so we've these options:
A) If market remains above HVE 2918 with bullish internals, try to buy towards ONH 2926.25 GAP 2931.50 and HVE 2936.
B) If market starts to move below 2936 with bearish internals, sell towards ONL 2913.25 GAP 2911.75 and HVE 2908.
Today's Economic Calendar
10:00 Factory Orders
10:30 EIA Natural Gas Inventory
