The ten year yield chart is at a critical juncture. A massive H&S top is forming. Either way this pattern breaks will tell us where rates are going in 2014. This is the most important chart in the US markets bar none. The colored lines are different cycle projections looking for key points in time in the future.
Sentiment is very bullish here. The shifting of the lower band suggests this can get much more frothy before a significant pullback occurs.
This stock bond ratio keeps pushing higher. It is acting like it wants the 2007 high.
Breadth is mixed, but this chart is so clean I'll stick with it as a key. Thus far the up trend remains.
XBI is showing some strength as it refuses to break down from a H&S top. Over 125-127 we would see more wildly bullish action in biotechs to end the year.
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