Elliott wave analysis of US 10Y Yield - More upside to cover

US 10 Y Yield

I was asked if I have a Count for the US 10 Y Yield, normally I don't, but this would be my preferred Count both for the long term Picture and the medium term Picture.

I think we saw a triple zig-zag decline from the July 1981 high at 15.84% and saw the end at 1.56% in July 2012. That was a 31 year decline of 14.28 figures.

Looking at the daily chart we can see a nice inverted S/H/S bottom calling for an important long term bottom. The target for this inverted S/H/S bottom is near 3.36%.

From an Elliott wave perspective I would be looking for a much higher target with the first important target near 4.0%. I would not expect this target to be broken in the first attempt, but soon or later it will be broken for a rally much higher.