Originally Published March 28th
The reversed up from an extreme parabolic wedge sell climax. The 1st leg up of the short-covering rally could last several weeks. In a few months, it might reach 2,800 – 3,000. Traders should expect a trading range for a couple of months and probably all year.
The bond futures market has begun a trading range after a strong reversal down from an extreme buy climax.
The Forex market has a weak expanding triangle bottom. It will probably work a little higher, but then settle into a trading range.
30 year Treasury bond Futures market:
Trading range after extreme buy climax
The 30 year Treasury bond futures this week traded within last week’s range. It was an inside bar. In a bull trend, that is both a buy and sell signal bar. It followed a huge reversal down from the most extreme buy climax in history.
A big move up followed by a big move down creates big confusion. A trader who is confused is confident about only one…