Hey Ben: Quit Taunting The Bond Market
It has big teeth:
Short story, interest rates are skyrocketing. Check out the charts of TLT and IEF to see how quickly things are plunging. When TLT and IEF (bond prices plunge, interest rates soar). Conclusion: interest rates rise, housing/retail falls, economy slows further, stocks plunge. This was happening slowly but a big treasury auction next week has sent the process into overdrive.
On the bigger picture, after getting within 1 point of my bounce point yesterday, we came within 3 points of my up-move call (900) and are headed back down. We should break lower Tuesday under 878 and into the wild bearish frontier. That's got to be a disheartening finish for bulls after what looked like a constructive day.