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Monday, June 18th

On the economic calendar:-

10:00 Housing Market Index (Consensus 29 - Prior 29)

10:15 Fed Outright Treasury Coupon Purchases up to $2.25 billion

          Fed Outright Treasury Coupon Sales up to $8.75 billion

11:00 4 Week Bill Announcement

11:30 3 & 6 Month Bill Auction

The market gapped down sharply on the overnight open, reflecting the initial relief on the Greek elections, only for prices to stabilize and recover from the sell off. The overnight low was at 148’12, and we are currently at the highs of 149’27.

The sharp sell off, led to the 30 minute chart flipping bearish, only to flip flop back to the bullish side earlier this morning.

Interestingly, the decline yesterday evening found support at 61’8% retracement level of 148’17, and also the upward sloping trend line from the 146’28 lows.

We can clearly see a series of higher lows, and this would tend to suggest that 150’15 remains the initial target, and then filling the oft mentioned 150’21 settlement gap.