Short Term Elliott Wave structure in 10 Year Notes (ZN_F) suggests the pullback to 129.28 ended wave 4. The note has resumed higher in wave V. The internal subdivision of wave V is unfolding as a 5 waves impulse Elliott Wave structure. Up from 129.28, wave 1 ended at 131.19 and wave 2 ended at 130.26. Internal of wave 2 subdivided as a running Flat. Wave ((a)) of 2 ended at 130.24, wave ((b)) of 2 ended at 131.17, and wave ((c)) of 2 ended at 130.26.
The Note has resumed higher and broke above wave 1 at 131.19. This suggests the next leg higher in wave 3 has started. Near term, while pullback stays above 130.26 in the first degree, and more importantly above 129.28, expect the Notes to extend higher. We don’t like selling the Note, and expect buyers to appear once wave ((ii)) pullback is complete in 3, 7, or 11 swing. Potential target to the upside is 100% extension from August 23 low which comes at 132.1 – 132.3 area.