Originally Published May 2, 2020
The is turning down from a nested wedge rally on the daily chart. This week is a good candidate for the start of a 2 – 3 week pullback.
The bond futures market has been sideways for 8 weeks after an extreme buy climax. It will probably be in a trading range for the remainder of the year.
The Forex market has also been sideways for 8 weeks. It is in Breakout Mode. This past week’s bull bar slightly increases the chance of higher prices next week.
30 year Treasury bond Futures market:
Consecutive small inside bars after extreme buy climax
The market formed a small bull doji bar in April on the monthly chart. Its high was far below the March high and its low was far above the March low. April was therefore a small inside bar.
With only 1 day so far in May, the May candlestick is within April’s range. At the moment, there are now consecutive inside bars. This is an ii (inside-inside) pattern. This tight range is a…
