Even on the weekly chart (see), the savaging that T-Bond futures have received this week looks pretty nasty. Still, the move is not quite bearishly impulsive, since sellers would have to drive this vehicle beneath the key low of last March to achieve that. We should expect an ‘intervention’ soon in any case, since T-Bond futures have typically reversed when the technical picture started to look this bad. Camouflageurs would be well equipped to buy any bounce that follows a marginal breakdown beneath the March 2012 low, 138^28. (Please note that this chart tracks a continuous contract. A more ‘scientific’ better yields a corresponding low at 135^05.)
