Elliott Wave view in Ten Year Notes (ZN_F) suggests that it has a bullish sequence from October 2018 low, favoring more upside. Near term, rally to 140.24 ended wave I and pullback to 133.2 ended wave II. Internal of wave II unfolded as a double three Elliott Wave structure. Down from 140.24, wave ((W)) ended at 135.25 and bounce in wave ((X)) ended at 138.3. The next leg lower in wave ((Y)) ended at 133.22 which also completed wave II.
The Notes has turned higher in wave III. However, it needs to break above wave I at 140.24 to avoid a double correction. Up from 133.2, wave (1) ended at 135.3 and pullback in wave (2) ended at 134.18. The Notes then extended higher in wave (3) towards 138, and wave (4) pullback ended at 137.06. Finally, wave (5) of ((1)) is proposed complete at 138.18.
The Notes is now within wave ((2)) to correct cycle from March 19 low in 3, 7, or 11 swing and while the pullback stays above there, expect the Notes to extend higher. We don’t like selling the Notes. Potential target higher is 100% – 123.5% Fibonacci extension from October 2018 low which comes at 142.28 – 146.1 area.
Ten Year Notes (ZN_F) 1 Hour Elliott Wave Chart