Short Term Elliott Wave view on Ten Year Notes (ZN_F) suggests that the decline to 128 ended wave w. Wave x bounce is unfolding as a zigzag Elliott Wave structure. Wave ((A)) of x remains in progress with internal subdivision of a 5 waves impulse. Up from 128, wave (1) ended at 128.18 and pullback in wave (2) ended at 128.04. The Notes then resumed higher in wave (3) which ended at 129.15. Internal subdivision of wave (3) is also in 5 waves of lesser degree. Wave (4) pullback then completed at 128.31.
Up from 128.31, we can see a clear 5 waves as internal within wave (5). Near term, the Notes has enough number of swing to end wave (5) of ((A)) and it is expected to complete wave ((A)) soon. Afterwards, expect the Notes to pullback in wave ((B)) to correct cycle from 11/8/2019 low in 3, 7, or 11 swing before the rally resumes. We don’t like selling the Notes. As far as pivot at 128 low remains intact, expect buyers to appear during the dip in 10 year Notes in 3, 7, or 11 swing for another extension higher.
