June 2, 2010
September Treasury Bonds Poised to Move Higher
After building a support base throughout the day on Tuesday while reacting to the sideways trade in the equity markets, September Treasury Bonds mounted a strong rally
late in the session, indicating that they may be poised to launch the start of another leg higher.
For the fourth consecutive day, T-Bonds held the June 27th bottom at 122’05, indicating that there was still buying interest in the contract. At the same time the market
attempted to regain an uptrending Gann angle at 123’14. Although the market is currently on the bearside of this angle, it isn’t going to take much to turn the T-Bonds bullish again if this angle is
recovered. The minimum upside objective is a minor retracement zone at 124’04 to 124’19. If support can be established in this zone, then look for a retest of the contract high at 126’05.
The T-Bonds are dependent upon the stock market for direction at this time. If stocks get hit hard then the money …
