The Fed and the market ... the market and the Fed ...

Investors should be wondering if they are looking at the right thing. For some time, we have told our paid subscribers that; "I would not be surprised to see the Fed push yields (30 year yields) below the 30 year channel into an oversold yield condition and then an oversold bounce to occur from there."

Well, yesterday the Fed brought yields down to the very bottom of the channel and it was testing the channel. So, today will be the test to see if the Fed does push the yields below the 30 year channel. (See the posted chart below showing the 30 year yield action from May 2013 to yesterday.)