USM09 – T-Bond Futures (Last:120^07)

The futures are within a day’s weakness of a potentially very important Hidden Pivot support at 119^10. I have my doubts that it will end the bear market, but it could engender the kind of bounce that will make shorts doubt, at least for a short while, that the U.S. Government is indeed bankrupt.  The enormous rally in mid-March that dominates the accompanying chart was the only feel-good day the bonds have enjoyed the whole way down. Some may recall that it coincided with an announcement that the Fed would buy whatever quantities of bonds were required to hold interest rates down. One could reasonably infer that the underlying purpose of the bank bailout has been to allow them to unwind the foolishness of that day.

Tagged as: Forecast, T-Bond Futures, USM09