Decline to 1.843 completed wave X. From this level, $TNX rallied in wave ((w)) in the form of a triple correction (w)-(x)-(y)-(x)-(z) where wave (w) ended at 1.989, wave (x) ended at 1.907, wave (y) ended at 2.252, second wave (x) ended at 2.101, and wave (z) of ((w)) ended at 2.335. From the high of 2.335, $TNX declined in wave ((x)) in the form of double correction (w)-(x)-(y) where wave (w) ended at 2.137, wave (x) ended at 2.301, and wave (y) of ((x)) ended at equal leg 2.092. The instrument then has started to move higher from 2.092.
As far as 1.843 level stays intact, $TNX is expected to make an extension higher. Or at minimum, the instrument is expected to bounce for 3 waves to correct the decline from wave ((w)) high at 2.335 per Elliott Wave hedging idea. The rally so far from 2.092 looks to be the first leg, so at minimum a second leg pullback should happen once the first leg of rally has ended, to be followed by another extension higher again in the third leg later. We don’t like selling the pullback.
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