Bond Staircase

The hourly bar chart above depicts a staircase in the September bonds. The hourly boxes are 46 ticks high and the staircase has steps of ½ box or 23 ticks. The presumption is that the bonds are headed down the staircase to support at the ¼ division point of a box at 116-28.

This reaction is the biggest one in the bonds in several weeks. I anticipated a substantial reaction because the market had rallied into resistance defined by the confluence of the two range divisions drawn in blue on the chart.