Thursday, December 30, 2010

$FVX did not sustain break past 61.8 Fibonacci retracement

I am interested in $FVX (5 Year Treasury Note Yield) because the prices of both MFBFX and FBIDX are inversely correlated to intermediate-term treasury yields.

$FVX has been on a rip since early November.  It looks like it may have found resistance around 21.  It actually went past it two days ago, but now it's back below it.  Another move above it would be bad news for bond prices.

It needs to be closely monitored in the next few days.

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