Bernanke is vowing to keep interest rates low ... but, can he?
We say this because the market is not satisfied with receiving low yields when risk levels are perceived to be rising. That clearly showed up on the 10 year yields yesterday when the yield jumped up to 36.82.
It wasn't just any up move, it was an up move that passed through the resistance of our "flag pattern".
This "upside breakout" has an upside projection for this pattern at around 45, so there is still a way to go. I'm sure Bernanke will be trying to fight it all the way, because this now presents a major problem to his current strategy.
