(Z18) 21-DMA Caps Topside......>

US 10YR FUTURE TECHS: (Z18) 21-DMA Caps Topside

*RES 4: 120-18  Descending trendline (off May and Aug highs)

*RES 3: 119-19  100-dma

*RES 2: 119-00  Sep 28 high

*RES 1: 118-16  Low Oct 1, down trendline resistance

*PRICE: 118-03  @ 09:26 GMT, Oct 16

*SUP 1: 117-13+ Low Oct 8

*SUP 2: 116-30  Bear channel bottom (continuation chart)

*SUP 3: 116-20  Breakout target from triangle pattern (continuation chart)

*SUP 4: 115-46  61.8% Retracement of 103-20+ to 135-29

Recovery efforts have so far failed to gain traction with the 21-dma continuing

to cap topside gains. The broader downtrend remains intact with bears looking to

return to the Oct 8 low at 117-13+, below which the bear channel bottom at

116-30 comes into play. Bulls need a break of the 21-dma, now at 118-13, to

shift the short-term outlook more positive, opening the Sep 28 high at 119-00.

Above here would mark a significant improvement in the longer-term outlook.