Purity In Charting

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:

1. An inverted head and shoulders that has already broken conclusively on the upside.
2. A flag, trend- continuation, pattern.

The first "reads" to a yield of 5.40% (essentially already reached) and the second to 5.90%-6.0%.

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:

1. Another inverted H&S - reads to 8%
   
2. A down trendline penetration - reads to 8.50%

It all boils down to this, IF you are a pure chartist: both short and long-term chart patterns are coming together to form a powerful technical picture, arguing for significantly higher long rates.

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.