Adjusted on: 9/4 US 30-Year Bond: Now bonds want to bounce – to target 131.06 – and until the stops get hit we need to trade with that in mind.
10-Year Treasury Notes: 10s “bounce” from yesterday’s letter has not been negated; while trade below 122.315 COULD be the move to take the bounce “off, we’ll certainly see weakness below 122.265. 124.01 is the bull’s target.
5-Year Treasury Note: The key here is this pivot – even if the % has moved a bit. Weakness seeks 118.23_2; while there IS support there, faders should note how far down the bond & 10YR targets are… Be careful fading rallies off the 1 ¾%.
S&P500 Stock Index: The pivot SHOULD be 28.50 but because the big picture is still bearish I set it a bit high. Trade THRU 1628.50 targets 1589.75. 1669.25 will offer resistance – but trade thru it targets 1681 – and it is bull-control of 1681 that removes the “big picture” bearish bias.