Adjusted on: 10/7 US 30-Year Bond: I didn’t change anything in bonds accept putting the pivot at 133.18…Monday’s trade provided us a handful of trades – but nothing changed as to the “bigger picture. At some point bonds will breakout of the recent range; we’ll use 133.29 as the upside trigger and 132.19 (there is support there) as the downside trigger.
I don’t see a bias in bonds so in between those triggers we’ll just need to scalp. 10-Year Treasury Note: The ONLY adjustment here is the PIVOT. We still need to respect follow-thru higher at 126.275; in addition to the 127.125 target there is another NICE target at 128.03.
We can treat 125.22 as “last support” between the current market and the yield.
5-Year Treasury Note: NO CHANGES from Sunday’s letter…If the bulls can take out 121.11_7 it lets them go after 121.21. Like 10Yrs, note the only support between current trade and the yield…
S&P500 Stock Index: Like BONDS, there will be a move here at some point; trade above 93.50 needs to be respected for a test of 1724; Monday’s successful holds of 78.25 should keep us focused on a move to 57.25.