Bonds & Notes Reinforcing Strength
05/28/16 Weekly Re-Lay:
“Bonds & Notes have been unable to turn their daily trends down, so a new rally could soon take hold…
Bonds & Notes have consolidated after fulfilling the intermediate outlook for an overall (initial) rebound into May 16th – ~180 degrees from the Nov. ’15 lows & ~90 degrees from the Feb. peak. That also completed a ~60-degree overall advance from the March 14th/16th lows – projecting a potential future peak for mid-July…
The weekly & intra-year trends remain up, so the benefit of the doubt remains with the positive side of these markets.
June 2–3rd remains as the next phase of an ~8-week, ~4-week & ~2-week high-high-(?) Cycle Progression combined with a ~6-week low-low-(?) Cycle Progression… with the daily trends failing to turn down, it leaves open the possibility for a rally back toward the recent highs in the coming days….
More significant is the potential for an intermediate peak in mid-June… completing back-to-back-to-back, ~90-degree (13–14 week) advances & perpetuating a ~4-month low-high-high-(high) Cycle Progression… 360 degree moves from the June ‘15 & June ‘14 lows. That, too, needs convincing validation in early-June.
Eurodollars spiked lower a week after testing & holding their weekly HLS. That indicator projects an intermediate low in the ensuing (1–3) weeks and is reinforced by an 11-week high-low-low-(low) Cycle Progression that comes into play during the coming week.
Bonds & Notes will not turn their daily trends down until daily closes below 163-04/USM & 129-10/TYM. Until that occurs, they leave open the potential for a new 3–5 day rally.”