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The March US T-Bond contract has fired 90-10 Low Continuation & Reversal, High Breakout Continuation Setup, and Momentum Pinball Buy signals for today's trading. The 90-10 Low Continuation & Reversal signal tells us to look for morning follow through on the weak close, but to expect a likely reversal once the initial move has bottomed. The High Breakout Continuation Setup signal implies significant upside IF Friday's 145-25 high happens to be taken out. The Momentum Pinball Buy signal suggests that we'd want to consider longs if price is strong enough to break the first hour high. Cycle Indicators (chart at right) appear as if a short term cyclical top has recently been marked, and the larger trend is to lower prices. Odds favor continued downside in today's early trading. Look for an opportunity to sell on a break of Friday's 143-30 low, or even earlier if price demonstrates weakness below the 144-19 level of the Daily Pivot. But stand prepared to exit or even reverse if we get appropriate price reversal patterns and/or Oscillator Divergence near important support levels. Our Normal Low Range Projection level 143-05 or the Extended Low Range Projection level of 142-14 would be likely areas for such a reversal to take place, as would a test and failure of either Friday's 143-30 low or the 143-17 swing pivot low set on January 4th. The Momentum Pinball Buy signal, on the other hand, suggests we consider the long side if the first hour's high happens to be broken to the upside.

 

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