USZ10 – December T-Bonds (Last:133^10)

December T-Bonds (USZ10) price chart with targetsThe futures topped last week a single tick beneath an important rally target at 133^23 given here earlier this month. Just one more tick would have implied the move is quite powerful, since it would have exceeded a visually obscure chunk of supply deposited September 2 on the way down. However, the rally that occurred will suffice to turn the daily chart bullish for the first time since mid-August, since it exceeded the requisite two prior peaks (one of them internal, the other external).  Now, ideally, we should see a 1^03-point “booster” rally from anywhere north of 131^00 to signal the next leg up. It could eventually go as high as 136^00______ UPDATE (2:11 p.m. EDT): The predicted booster rally has come this morning off a 131^21 low, triggering a “buy” signal at 132^24.  Critical resistance lies at 133^27, the Hidden Pivot midpoint of the pattern, but if the futures can close above that number for two straight days, I’d infer they’re on their way up to 136^00.