The rates on the 10-year Treasury Note correlates inversely with risk assets, such as stocks. Why is this important? Well, according to the following chart, the interest rate trend on the key 10-year Treasury Note is now up. The infamous exponential moving average strategy has signaled a reversal in trend for the 10-year rates on Treasury Notes. That is, the 15-week EMA has exceeded the 40-week EMA, which simply means that the trend for this key rate has shifted from a declining trend to a positive, rising, trend. In addition, if 2.65% is penetrated, that will be a clear break of the downward resistance line from 2007 and further confirmation of a rising interest rate trend going forward.
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