Bond count on 10Y
Along with extremes being registered in stocks and commodities, we have bonds which may on the verge of a wave three up in yields. Question: Are rising yields good for a $16T national debt? Hmm, ask Greece, Spain, Italy that question.
A break up and over of the downtrend line is of course bullish for yields (bearish for bond prices). Yields also happen to be in a falling wedge pattern just like stocks.
During P, I surmise that stocks and bonds will sell together hard at many points in time. We have seen this in Spain and Greece. Where all "assets" are sold. The net receiver of this? Of course King Dollar.
We may have yet another triangle developing - likely to be resolved by the Fed's announcement tomorrow afternoon.
Another big pullback in Sentiment for the US dollar. Via Sentiment Trader
Elliott Wave International, as of last Friday, Gold Daily Sentiment Indicator was 90% bulls for gold, and 92% bullish for silver (via Trade-Futures.com).
So bullish sentiment is certainly frisky on a number of fronts (and bearish on the dollar). Things are again setting up for a big turn.