Expect Interest Rates To Keep Going Up

Today was the FOMC and the tone of the FEDs was dovish as usual. But if you observe the charts of TNX and TYX which is the 10 Year and 30 Year Treasury Index you will notice that it is reversing. Attached are the weekly charts for TNX and TYX. Notice the last weeks candle. When the candle is so big and hollow the following weeks candles are always higher. Also the momentum on the weekly chart is turning positive. The 20 and 8 MA lines are curling up. All this suggests a higher interest rates in the coming weeks. Also notice the weekly TLT chart. It needs to drop more which makes sense as Interest rates rise, yields increases and bond prices drop. Higher interest rates are also not good for Utilities. Check out the attached XLU weekly chart. It needs to go much lower.

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TNX_4hr

TNX_Weekly

XLU_Weekly

TLT_Weekly