10yr breaks support, Goldman issues identical chart analysis as ShadowCap

The 10yr broke the important 310bps support level I’ve been highlighting for a couple weeks now. The risk aversion expressed by the demand for Tsy notes manifested in a more pervasive risk asset decline today, in equity, credit, and FX.

TNX

Meanwhile, GS FX sales strat issued a report recently highlighting two very important technical developments we’ve been repeatedly speaking about: the 1040 H&S in the S&P and the 10yr 310bps level. The report is below.

On the economic data front, the Chinese LEI was revised downward to 0.3% from 1.7%, causing Chinese equities to fall. The Aussie Dollar also plunged on the news, as did copper. The Australia-China-USA “love triangle” pervasively covered on ShadowCap is quickly becoming a closely-followed theme in financial news.

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