• 303 days Will The ECB Continue To Hike Rates?
  • 303 days Forbes: Aramco Remains Largest Company In The Middle East
  • 305 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 705 days Could Crypto Overtake Traditional Investment?
  • 710 days Americans Still Quitting Jobs At Record Pace
  • 712 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 715 days Is The Dollar Too Strong?
  • 715 days Big Tech Disappoints Investors on Earnings Calls
  • 716 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 718 days China Is Quietly Trying To Distance Itself From Russia
  • 718 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 722 days Crypto Investors Won Big In 2021
  • 722 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 723 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 725 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 726 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 729 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 730 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 730 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 732 days Are NFTs About To Take Over Gaming?
The Problem With Modern Monetary Theory

The Problem With Modern Monetary Theory

Modern monetary theory has been…

How Millennials Are Reshaping Real Estate

How Millennials Are Reshaping Real Estate

The real estate market is…

Billionaires Are Pushing Art To New Limits

Billionaires Are Pushing Art To New Limits

Welcome to Art Basel: The…

  1. Home
  2. Markets
  3. Other

Are Bonds About to Tank?

There are a ton of patterns warning in spades that the U.S. Treasury Bond market will soon tank. Five patterns no less. We got a Megaphone pattern confirmation in U.S. Treasury Bonds several weeks ago as Bonds fell decisively below 109. This gave us the decisive break below the Head & Shoulders neckline, confirming that pattern as well, meaning the probability of its minimum downside target of 102 being hit is now quite high. If 102 occurs, it means we are well into a dramatic wave 3 decline.

In addition to the 1) Bearish Elliott Wave count, calling for Bonds to tank over the intermediate term are the 2) Broadening Top, a.k.a. Megaphone pattern, the 3) Bearish Head & Shoulders pattern, the 4) Diamond Top pattern, and we now have a fifth pattern emerging warning of a huge upcoming decline, 5) a Bearish Flag pattern, new this week. It warns of a minimum downside target of 97.00.

In studying the Elliott Wave labeling, Minor degree wave 2 up could be complete in Bonds. If so, it was an incredibly weak retrace of wave 1 down. Wave 2 achieved an approximate Fibonacci .236 retrace (was actually .229) of Wave 1, which bottomed on Friday, May 12th at 105.31, the day after our last Hindenburg Omen. The Minor degree 2 up rally was 3.13 points, and the wave 1 down decline was 13.69 points. A .382 retrace would target an upside of 111ish for wave 2, should we witness a complex morphing of the rally, some sort of double zigzag higher. That would put Bonds at a retest of the neckline of the Head & Shoulders top pattern. A decisive break below the rising parallel trend-channel, below Friday's close of 106.69 would confirm wave 3 down has started. Wave 3 down should send Bonds a lot lower than anyone wants to see, especially the housing market.

"And death and Hades were thrown into the lake of fire.
This is the second death, the lake of fire.
And if anyone's name was not found written in the book of life,
He was thrown into the lake of fire.

Revelation 20: 14, 15

To receive a Free 30 day Trial Subscription, simply go to www.technicalindicatorindex.com and click on the "Free 30 Day Subscription" button at the upper right of the Home Page. Once subscribed, you will have access to our remarkable buy/sell signals on the blue chip Dow Industrials and S&P 500, NASDAQ 100, and HUI Amex Gold Bugs Index. A subscription also gains you access to our daily Market Analysis Newsletters, Traders Corner, Guest Articles, and our Archives. We now offer Multiple Payment Options at the Renew Today! button at www.technicalindicatorindex.com.

The Da Vinci Code: A Quest for Answers is available at www.davinciquest.org.

 

Back to homepage

Leave a comment

Leave a comment