The TNX Chart Level That Could Be Key for Stocks

A move below 23.00 by the 10-year yield index could trigger a sell-off for the stock market

Bryan Sapp

CFA, Senior Market Strategist

Apr 5, 2017 at 2:15 PM

For me right now, the big chart to watch is that of the CBOE 10-Year Treasury Yield Index (INDEXCBOE:TNX), which represents 10 times the underlying bond yield. It's a little odd to me how the stock market is a freight train --- but yields/bonds sure aren't buying in.

The key TNX level, in my opinion, is 23.00 -- equivalent to a 2.3% yield on the 10-year note. Below 23, I believe we could see a decent stock sell-off. Above here, however, you have to remain bullish.

tnx daily chart 0405

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