Monday, May 23, 2005

10 year T-note Boxes on May 23

The hourly chart above depicts my estimate of the boxes in the June 2005 ten year note contract. The boxes were defined by the reaction on April 2 of 39 ticks from a high of 110-02 to the low of 108-27.

The market is making a second try to move into the fourth box in the uptrend but I think this attempt will fail and that we will see another reaction down to 111-28, the 1/2 point of the third box or to 111-09 the bottom of the third box.

The uptrend from the March low at 107-25 is not over yet and I think this market will probably get into the 115-116 range before the upmove ends.

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