T-bonds

Here is an hourly chart of December T-bond futures. I last commented on this market here.

I had expected the bonds to make a new high for the move up from the May low at 105-11. Instead the market got close to its previous 113-11 high and then started a move down to the low end of its current trading range. I think this is the third phase of a standard three phase correction. It should carry the market down about a full box from yesterday's 113-05 high and end near the 1/4 point of its current box in the 111-20 to 24 range.

Once this correction is complete I think the bonds will rally into the 114-115 range from which point a substantial correction should begin.