T-Bond futures had their worst day yesterday since March 6, when a four-point washout cleared the way for a rally that lasted nearly a month. Will yesterday’s selloff similarly set the stage for a prolonged move higher? My gut says no, mainly because there’s an unfulfilled correction target at 150^07 that has been a month in coming. Even so, it’s not too early to start looking for a possible upturn, since it would not be unusual for a correction in a bull market to fail to reach its ‘d’ target. At the moment, on the 15-minute chart, that would imply an uncorrected ‘impulse leg’ that exceeds the two labeled peaks without a correction. Conversely, any rally that falls shy of that benchmark should be regarded as a shorting opportunity, presumably via an ABC reversal on a chart of three-minute degree or less. _______ UPDATE (May 13, 12:45 a.m.): So far, the bounce is unimpressive. _______ UPDATE (7:58 p.m.): The relapse off a bull-trap high on the opening bar was not exactly a healthy sign.
