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(Z0) Dips Considered Corrective

US 5YR FUTURE TECHS
  • RES 4: 126-046 High Sep 30
  • RES 3: 126-03+ High Oct 2
  • RES 2: 125-31 High Oct 15 and a key near-term resistance
  • RES 1: 125-29+ High Nov 5
  • PRICE: 125-242 @ 11:27 GMT Nov 6
  • SUP 1: 125-21 50% retracement of the Nov 4 - 5 climb
  • SUP 2: 125-122 Low Nov 4 and key support
  • SUP 3: 125-112 Low Jun 10 (cont)
  • SUP 4: 125-10+ 1.236 proj of Aug 4 - 28 sell-off from Sep 3 high

5yr futures rallied sharply higher Wednesday off the day low of 125-122. The rally led to a break of trendline resistance at 125-236, drawn off the Sep 30 high and was confirmed by the breach of a bull trigger at 125-272, Oct 28 high. This strengthens a bullish outlook and signals a clear reversal of the entire downleg since early October. Key support has been defined at 125-122. Dips are considered corrective.

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