The US 10-year T-Note (ZN) posted a bullish spike reversal on its continuous monthly chart during November, coinciding with a bullish crossover by monthly stochastics below the oversold level of 20%. This means the ZN both signaled and confirmed a move to a new major (long-term) uptrend as we head into December. Recall from previous analysis I was looking for the downtrend to reach the target of 129-025 before turning, with the November low coming in at 129-160. This looks to be close enough, or another case of the Horseshoe Proximity playing out. Often with a spike reversal the market immediately retraces, providing an opportunity to get new positions established. This looks to be the case early Wednesday, December 1 as the ZN sits below the November settlement of 131-175.
Theoretical Position: If going long the ZN, stops could be placed below the November low of 129-160.
