Bond Market about to fall - US indexes stall Day traders are looking for low risk entries on this continuation up.
This is the weekly chart on the 30 year bond futures. Price has just moved down the past week to break the support at 139.17 where it has held up for over four months. we have had slightly decreasing volume during this period until the floor was broken. Sellers moved in this last week an evidently the Fed has not approved more Economic Recovery team dollars to hold them up at this price. The unfortunate side to this price action is that in the long run the fed might have to increase bond interest rates in order to lure the Chinese back to the table. As the Fed gets the treasury to print more and more dollars it weakens the value of the dollar for foreign investors and could put the bond market in a free fall. This interest rate hike will occur when bonds drop through the previous support around 127.16 and works it way to 116.16 where we could start to see strong support. If this moves down to this level be prepared to see out housing market get its second round of beatings. As interest rates soar to cover and bring money in for the bond sales to support our interest on the deficit, we will see housing loans slow, price drop and more down ward pressure on employment and increasing food prices. With in a year we could see the formation of a pattern known as a head and shoulders with the right shoulder approaching 127.60 as resistance to consolidate and then another sell off in the bond market. The bond mark [...] day trading course
