This signal is very weird, as I mentioned before. There is
a top and bottom signal price, and we broke the bottom today
and bounced back. Normally, such breaks should not occur. In
bonds often such breaks have preceded a strong move. The
last weird signal when we broke the bottom price happened on
October, 13, 2005, and the buy
signal from there worked perfectly, we rallied to the level
we were supposed to by Thanksgiving. The sell did not work
as well. The target price was 1120, but we never went there.
I gave the level
(1363) and time frame (41 trading days) for a possible rally
if we made the low today. That does not mean we actually go
there. It means that for now support level will stay relatively flat. If we break it, we could fall further.
If we go all the way, we could rally up to 1363 or so.
In 1987 prices went all
the way to yet another level of the signal, which is currently
at around 566, but it's moving higher, not by much (gulp!) |
