Tactical Strategies - Z 2025 SOFR: negative longer term momentum
Z 2025 SOFR: many fixed income futures markets are experiencing the same technical setups. With an oversold short term market positive reversals are being triggered.
However, on a longer term thematic, various momentum-based indicators are starting to get confirmed or nearing confirmation. On that front, monitor for a bearish window
via a negative crossover of the 20 day average (red line) below 40 day average (blue line). Prior similar setups via purple vertical lines with bulls in green. This presents
a sell rally mentality. This type of crossover has been effective in yielding 2-6 month cycles.
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