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The June T-Bond contract has fired NR7, Inside Day, and 2 Day ROC Sell signals for today's trading. The NR7 signal is triggered when the range of the day's trading is the narrowest of the last seven days. It tells us to expect range expansion and a pickup in volatility with a likely breakout in store either today, or over the next few days. The Inside Day signal is fired when the day's trading occurs within the range of the prior day. A subsequent breakout of an Inside Day's range typically points the way of the next trend move. The 2 Day ROC Sell signal implies that today's principal trade direction should be to the downside. Cycle Indicators (chart at right) have moved into a region where short term cyclical tops often form, but the more immediate trend is to higher prices. The NR7/Inside Day signal combination tells us to stand prepared for a large impulse move in either direction. Trade the break of Friday's 142-07 high to 141-16 low range with a stop and reverse on the opposite side as the entry. Price action relative to today's 141-29 Daily Pivot level may provide clues for earlier entry. Note that the June T-Note contract has fired the exact same Pattern Signals. This means that it can be traded in very similar fashion.
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