Yesterday’s plunge bottomed a quarter of a point from the 158^14 correction target we’ve been using since April 22, when the futures were trading nearly six point higher. The Hidden Pivot target has the potential to mark an important low. However, if it gives way and the June contract falls anew, we could infer they are fixing to dive all the way to 150^07, completing a corrective cycle begun from 171^09 on January 30. A plunge to the target would push rates above 3% from a current 2.6%, hitting levels we haven’t seen since last November. Bottom-fishing was appropriate, but because there were no reports in the chat room of any subscriber having done so, I’ve established a tracking position in TLT, where there was some action. _______ UPDATE (May 1, 12:03 a.m.): A marginal new low Thursday at 158^08 — less than a quarter of a point from the crucial midpoint support noted above — left the futures in precarious shape, poised at the edge of a mile-high cliff.
