All major indices are now in bear markets. But, the started to reverse up from a parabolic wedge sell climax on Friday. There will probably be a strong short-covering rally for the next 2 weeks.
The bond futures market has had the most extreme buy climax in its history. This week’s reversal down will probably be the start of a few weeks of sideways to down trading.
The Forex market broke strongly above its 18-month bear trend line. The 2-year bear trend is probably over. This week’s strong bear reversal will probably lead to a 1 – 2-week pullback.
30 year Treasury bond Futures market:
Huge buy climax so expect pause in bull trend
The Treasury bond futures market had a huge rally over the past 3 months on the weekly chart. It was especially dramatic over the past 4 weeks.
Bond futures reversed down strongly from above the top of its bull channel. The selloff should test the February 21 low within a few weeks. It might reach the October 17 low…