Clik here to view.
Treasuries Elliott Wave Count
Over the past weeks I have followed the development in US treasuries closely. It was a nice trade, that seems to have gone sour now. However, upon close examination we can notice 5 waves up and 3 waves down. The third wave is still in progress, but nearing its ideal target (61.8% retracement = 143’30 and A=C is at 143’24).
If you are not familiar with treasury bond futures, please note that it trades in ticks of 1/32. So 30 ticks = 30/32 = 0.9375).
The bottom line, we are coming into a very strong support from a technical standpoint and from a structural standpoint (Elliott Wave). The implications on the market is quite bearish and the implication on Bonds is quite bullish, which seems to be contrary to widespread belief (Marketwatch ran several bearish Bond stories today).
Watch your backs, stay nimble and keep an eye on Treasuries. If it confirmst the pattern, we should put in a bottom very soon.
Coincidentally, the wave volume on the daily chart shows that this panic sell-off contained less selling than we had buying on the move up (bottom indicator on chart below).
Clik here to view.
Wave Volume
Image may be NSFW.
Clik here to view.
Image may be NSFW.Clik here to view.
