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Two days back we observed a deeper correction in stocks during the US session, triggered by some hawkish comments from Fed members. As a result, US yields moved up to the 78.6% Fibonacci level, which often marks the final and critical point for potentially completing corrective price action, ideally up from the May low.Now that 10Y US yields are back below 4.5% after today’s US PCE inflation report, a correction within the downtrend can be completed, so US yields may face more weakness in upcoming days/weeks. This could also stabilize stocks and complete the current pullback from the highs, particularly in the S&P 500, and some other assets as well.(Click on image to enlarge)
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U.S. Yields Could Be Back In The Downtrend
