December U.S. T-Bonds closed up 1 24/32 at 132 3/32 Wednesday. Prices closed nearer the session high Wednesday, hit a fresh five-week high and scored a bullish “outside day” up on the daily bar chart. The FOMC news was bullish for bonds and notes Wednesday. Heavy short covering in a bear market was featured. Bond market bears still have the overall near-term technical advantage. However, a 4.5-month-old downtrend on the daily bar chart was at least temporarily negated Wednesday. The next downside price breakout objective for the T-Bond bears is closing prices below solid technical support at the contract low of 128 12/32. The next upside technical objective for the bulls is to produce a close above solid technical resistance at the August high of 133 20/32. First resistance is seen at Wednesday’s high of 132 15/32 and then at 133 even. First support is seen at 131 12/32 and then at 131 even. Wyckoff’s Market Rating: 3.0.
December U.S. T Notes closed up 1 15.5 (32nds) at 125.20.0 Wednesday. Prices closed nearer the session high Wednesday, hit a fresh five-week high and scored a bullish “outside day” up on the daily bar chart. Heavy short covering in a bear market was featured. The bears still have the overall near-term technical advantage. The next upside price breakout objective for the bulls is closing prices above solid resistance at the August high of 126.02.0. The next downside price breakout objective for the bears is producing a close below solid technical support at Wednesday’s low of 123.23.5. First resistance is seen at Wednesday’s high of 125.29.0 and then at 126.00.0. First support is seen at 125.16.0 and then at 125.08.0. Wyckoff’s Market Rating: 4.0
