T-bonds

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

I thought the drop from 113-05 would end near 111-24. Today on the employment news the market has accelerated well below 111-24, so far dropping as low at 111-15. This tells me that a muli-point, multi-week downtrend has begun. My best guess is that it will drop the bonds into the 107-108 range.

I have drawn short term trading boxes which ar 42 ticks in height. If the bonds trade according to form the market will stop this break temporarily near the 1/2 point of the next lower box which stands qt 110-02 and then rally 30-40 ticks.