Comments: US 30-Year Bond: As long as trade stays below 135.19-135.27 we need to favor the bears for a push BELOW 129.00. 131.27 will be the catalyst for THAT move. Ending back above the 3 ¾% post-# would likely cause some short-covering/new long re-sets. 10-Year Treasury Notes: The bears will do better below 124.15; that will target 123.265 and if they control THERE – that’s bearish. Rallies still look like a sell; until the bulls re-take the 2 ½% (127.01?) and 127.17 the market is still vulnerable to the downside. 5-Year Treasury Note: Although I’m quite bearish on the sector, I’d like to see 5s take out this pivot. 120.20 is then the “last support”…Upside, rallies that stay below 121.13 keep the market bearish; the bulls really need 121.255. S&P500 Stock Index: Strength – especially thru the highs – seeks 1720 and 1773. Trade below 1685.75 will bring some weakness with much greater weakness coming with a failure of 1677.
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