As spectacular as yesterday’s rally spike was, the low of the crash phase still left the futures above the previous day’s high. Yes, the wild excesses of the bullish phase are apt to weigh on this vehicle for a while, since buyers who got trapped on the opening bar will be desperate to recoup their losses on any rally. But those who hang in there will have a rampaging bull market going for them, as well as a 163^08 (!) Hidden Pivot target that is now my minimum upside objective. If it is achieved, it would imply that long-term yields are bound for depths even lower than the record lows of 2012, when the 30-Year Bond traded down to 2.82% and the 10-Year under 1.50%. If this were to occur within the next 12 months, investors in such vehicles as long-term Treasury strips and tax-free munis could reap capital gains exceeding 30%. _______ UPDATE (October 20 10:05 a.m. EDT): Five days after going nuts, the futures have settled into a mellow consolidation pattern. This morning’s rally is bullishly impulsive on the hourly chart _(A=142^20 at 6 a.m.), but we’ll simply watch this one to see whether it can achieve its target. There is not yet a point ‘C’ low to work with, but a completed rally would be at least 0^28 in length.
