I want to update the hourly box picture for the bond and 10 year note futures.
The bonds have reached the 1/2 point at 117-07 of another 46 tick box and this suggests yet another reaction ahead. The 10 year notes have proven stronger than I had expected yesterday and are now approaching the 1/2 point of their box at 113-03. My best guess for today is that the bonds will move above their 1/2 point and break a tad above the 117-12 level, the February 9 high in the March '05 contract while the notes rally close to 113-03.
The reaction which follows will carry both markets at least to the bottom of the box they are in now and quite possibly to the 1/2 point of the next box below. I think that the uptrend which began from the late March lows in these markets is not yet complete. So this reaction will present another buying opportunity.