If is wasn't so important, I wouldn't mention it a second time. But it is very important, and could be a "game changer" if we break above this long term resistance in the next few weeks ... so, please keep an eye on it.
What is it?
It is the 30 year bond yields ... symbol: TYX. Our comments are below ...
Bernanke and everyone in the White House will try to stop this from happening. If they can't, there will be real trouble ahead for the economy. Right now, the 30 year yields are at a MAJOR, 15 year testing point.
Below is an updated chart (as of 8:40 AM this morning) showing a 17 year down trend on 30 year bond yields. Its resistance line has had 7 touch points.
We are now at number 7, and international investors want to be paid higher interest for what they perceive to be an environment with much higher risks. That pressure makes this current test a MAJOR testing point.
Bernanke is sweating right now, because if he can't be successful at keeping interest rates down, the housing market will take another turn for the worse and foreclosures will keep rising. (Bernanke is trying to be very proactive in driving rates down right now. There is a lot of international pressure for higher rates coming in, so it will not be as easy as he thinks.)
If we break above the resistance line shown, we can expect interest rates to rise to a level that would increase monthly mortgage costs by 20% to 25% this year.
This could be one of the most significant events seen during the past few years.