$ USU15 – September T-Bonds (Last:150^17)

Updated June 11, 7:26 p.m. EDT

Yesterday’s powerful rally came off a low just four ticks from the 147^21 Hidden Pivot target where I’d suggested bottom-fishing. Since no one mentioned having done so in the chat room, I have not established a tracking position. Be that as it may, at the closing bell the rally was a couple of ticks shy of exceeding a key ‘external’ peak at 150^16 from Tuesday. Early Thursday evening, however, the futures surpassed the peak, suggesting that the rally is even stronger than it initially appeared. Indeed, it has now exceeded two ‘external’ peaks without a pullback on the hourly chart (see inset), making a follow-through leg very likely. In the meantime, the futures could conceivably push past even more external peaks before they retrace, adding to the imputed strength of the impulse leg. Once the up-leg terminates with a point ‘B’ high, traders can use a pattern like the one shown to get long, presumably on a chart of lesser degree.

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