Chart of the Day - Thursday, September 21, 2023

Today’s Chart of the Day was shared by Steve Strazza (@sstrazza). US Treasury yields accelerated higher across the curve today, with the 5-year, 10-year, and 30-year all closing at their highest in over a decade. Steve points out that the 10-year yield ($TNX) formed what's known as a Breakaway Gap today. Breakaway Gaps occur when price gaps above resistance or below support. They symbolize a decisive resolution in the direction of the gap, and they're often found in the early innings of a new trend. In this case, $TNX gapped above the October 2022 peak, completing an 11-month base. Momentum is confirming the breakout, with RSI reaching overbought (above 70) for the first time since March. Before today, $TNX had marginally broken out, but today's pop adds conviction to the breakout.