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(Z2)‌‌ Pulls Back From Last Week’s High

US 10YR FUTURE TECHS
  • RES 4: 113-09+ 50-day EMA
  • RES 3: 112-22+ High Oct 6
  • RES 2: 112-00 Round number resistance
  • RES 1: 111-31 High Oct 27
  • PRICE: 110-19+ @ 10:33 BST Oct 31
  • SUP 1: 110-16 Low Oct 26
  • SUP 2: 109-20/108-26+ Low Oct 25 / 21 and the bear trigger
  • SUP 3: 108-06+ Low Oct 2007 (cont)
  • SUP 4: 107.05+ 3.0% 10-dma envelope

Treasuries are lower today as the contract extends the pullback from last week’s high of 111.31 (Oct 27). The primary trend direction remains down. Moving average studies are in a bear mode position and a broader price sequence of lower lows and lower highs is intact. A stronger resumption of weakness would signal the end of the recent correction and refocus attention on 108-26+, the Oct 21 low. Initial resistance is at 111-31.

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