Update

Last week we saw multiple upside objectives hit and suggested watching out for a play from the short side on Treasuries. The trigger points were 119-25, 125-14, and 137-20 in 5s, 10s, and Classics. The objectives are 119-15, 124-26 and 136.22, respectively. The Classic has already triggered for a recalculation tomorrow.

The steep rolls influence a "closing" of the gaps created by the new contract. As the roll completed, the market has dropped back some. Big Macro explanations for the rally may find themselves having to adjust their stories...again.

In the SP, the upside target hit on Friday, so the new pattern is hinged at the POC (point of control) at 1918.50. This roll is still underway, with the spread trading near 8 points.

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