The Ten-Year Treasury Note futures made a low during mid-August that was tested twice and have since rallied toward a midpoint pivot at 134^11. Bernanke’s speech at Jackson Hole might well produce volatility in the Treasury markets, so it’s not a good idea to work orders beforehand. If the midpoint is surpassed, the futures will be aiming for a ‘D’ target only slightly below the bull-market high made in late July. But that target, at 135^7, is not likely to be reached soon (if ever), as it appears the notes will need some more time to consolidate before making a run for it. If the ‘C’ point of 133^14.5 is broken, the pattern will be cancelled and we’ll have to watch for a new one to be confirmed. (Posted by Doug “harry” McLagan)
