For those pure chartists amongst you (I am not, but frequently a picture is worth a lot more than babble), here is one to ponder: $TNX, the yield of 10-year Treasurys (click to enlarge). I have marked a couple of patterns that chartists will immediately recognize:
- An inverted head and shoulders that has already broken conclusively on the upside.
- A flag, trend- continuation, pattern.
OK, some more fun with this chart, from a longer perspective (click to enlarge).
Another couple of patterns being formed here, both of which are on the "cusp" of resolution, but have not yet confirmed:
- Another inverted H&S - reads to 8%
- A down trendline penetration - reads to 8.50%
I'll shut up now and let the pictures talk.... OK, I can't resist just one comment: with all this debt sloshing around, money has got to get expensive at some point.