Comments: US 30-Year Bond: The pivot is the key…the 134.00 is a NICE target up-top and bonds will lose a lot of sell pressure back up thru 133.15. Weakness looks to re-test 131.27 – and it’s follow-thru THERE that brings the drop to 129 and 126 into play.
10-Year Treasury Notes: If the bulls can take out 126.03 it lets them test 126.23. 126.23 SHOULD be a chop – but follow-thru higher will seek 127.14 (pivotal). NOTE: The 2 ½% COULD be near 127.04. Downside has no support.
5-Year Treasury Note: Above 121.255 targets 122.055 – a first touch fade; 120.20 is ‘last support”…the market will lose sell pressure above both 121.06 and 121.13_2.
S&P500 Stock Index: Strength – and if we don’t wait til thru the highs we better at least get a hold of this pivot – will seek 1722.50. Trade is vulnerable to the downside below the pivot – and we’ll look for trade thru 78.75 to test 69.