The ten-year Treasury notes have been declining in price since making a bull-market high last summer, and are now targeting levels of 131^0 and 130^3 on the March contract. The pattern in question has a ‘C’ point of 131^29.5, which must not be revisited if our targets are to remain active. Buyers might expect to catch a ride back to higher levels with help from the Federal Reserve, if the central bank soon decides to put a halt to the six-month downtrend in Treasury bonds and notes. A midpoint buy should involve a three-tick stop-loss at 130^30.5, and a buy of the D target should be stopped one tick below 130. (Posted by Doug “harry” McLagan)
