Classical Monday

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On the economic calendar:-
 
08:30 Chicago Fed National Activity Index
11:00 4 Week Bill Announcement
11:30 3 Month Bill Auction
          6 Month Bill Auction
POMO:-
 
10:15 – 11:00 Outright Treasury Coupon Purchases up $1.75 billion
Speaking today:-
 
08:00 Fed Chairman Ben Bernanke
13:00 FOMC Member Charles Evans

What We’re Watching

The Bond market (and by that we mean treasury futures) has exhibited several weeks of significant action while the world focused on the Equity “Fall Up.” [The Upitulation in @Fearlicious speak]
Bonds had a Weekly Down (a higher than previous week high and settle lower on week) followed by a Negated Weekly Up (lower low, up on week, settle back below) and are now working right around the weekly again.
Above 132.02+ and 145 in Notes and Classics would constitute a weekly up and a sign to buy weakness Monday. However, Negated moves are MORE powerful (as last week showed) because the crossing takes participants out of positions prior to the actual settlement.
Today’s session is very important. Watch for activity to increase as/if those levels approach/breach.