Wow, I Go On Vacation and all Hell Breaks Loose...
Multiple trolls saying that I was wrong, I've thrown in the towel and so on. Of course I haven't. Things have played out largely as expected in my last post. I expected one more push up... which we got. It was on weak volume and the bulls have failed to confirm it today. As I type, the market is sinking to new lows on the day as the bond market continues to disintegrate.
Net result of the bond market collapse--mortgage rates are rising at increasing speed. We all know the end result of that... The market should break under 875 later this week or next week at the latest as the threat of an exponentially rising yield curve crushes the banks.
Chart the goryness:
And a quick look at the S&P 500.