T-Bond prices got pounded as last week drew to a close, but it left the futures trading only marginally beneath the previous Friday’s settlement price. The daily chart (see inset) shows a bigger picture that makes clear the corrective nature of any selling. It is difficult to imagine why some investors evidently still don’t ‘get it’, even though long-term bonds have been in a bull market for more than three decades. No matter. Their desire to trade Treasurys for ‘risk-on’ assets creates bargains for us while pumping up the garbage that we should always look to sell short.

So what comes next for this vehicle? It spent most of Friday playing toe-sies with the 165^11 target of a corrective pattern begun on Wednesday. We’ll give it some time to get traction, even if that require a few more days spent groping moderately lower lows. For real-time guidance when a tradable turn comes, tune to the chat room. You could also look for a ‘counterintuitive’ entry  opportunity on the hourly chart. Currently, the relevant pattern, which would trip a buy signal at 166^10, comes from these coordinates: A=164^25 on 2/23); B=168^25 on 2/24); and C=to be determined. (Note: Basis the June contract, the corresponding buy signal would come at 165^01.) _______ UPDATE (March 2, 9:55 p.m. ET): A correction that began three weeks ago should find traction at 169^19, or  possibly 161^29 if any lower.  Bottom-fishing with a tight stop can be attempted at either number. On the 240-minute chart,  a=170^26; or alternatively (on the 30-min) at 170^04. _______ UPDATE (March 6, 2:45 p.m. ET): Basis the June contract, I expect the correction to come down to 160^22 before this vehicle finds traction.