(Z18) Staying Below 21-DMA.....>

US 10YR FUTURE TECHS: (Z18) Staying Below 21-DMA

*RES 3: 119-00 Sep 28 high

*RES 2: 118-16+ Oct 1 low

*RES 1: 118-07+ 21-dma

*PRICE: 118-01+ @ 16:26 GMT, Oct 22

*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)

38.2% retracement from Sep 27 highs to Oct lows at 118-00+ failed to contain

price action Monday, giving way to a modest break higher. Nonetheless, the

21-dma remains in tact and acts as first resistance at 118-07+ despite the

downtrend remaining intact and the focus on the Oct 8 low at 117-13+. A break

below this level would bring the bear channel bottom at 116-30 into play. Bulls

need a break of the 21-dma, now at 118-07+, 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.