Last week September 2012 T-Bonds opened at 148-26 on Monday and closed Monday at 148-26, forming a doji candle and highlighting uncertainty and indecision for the start of the week. By Friday, T-Bonds had closed down 2-31 to finish the week at 145-28.
On July 27, the TS Analyzer at Trends in Futures quickly brought to light that the DI (from ADX) Differential had moved to zero and a red technical trade set-up was highlighted with MACD crossing down below the signal line, and Stochastics starting to correct from overbought territory. As of Friday’s close, ADX was at 43.5 showing T-Bonds to be in a strong trend down. MACD is bearish crossing the signal line down and then the zero on the histogram while adding divergence. As a result, Stochastics are currently in oversold territory.
Looking at the weekly chart below you can see the price action from mid- August 2011 through early May 2012 T-Bonds were in a solid weekly range. The top was at 145-00, bottom at 135-00 and pivot at 140-00.
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