Based on how Bond yields are starting to rise tonight and how the US dollar is going to explode sharply higher without much resistance to the left of the chart, I predict that prices over the next 3 days will collapse all the way down to the demand zone.
There was a guy on youtube explaining how the global financial system works and that China and Europe will be forced to sell Treasuries adding more pressure to bonds and finally causing the stock market to play catch up to bond prices.
If bonds is paying 5 or 6%, it doesn't make sense to risk money on equities if it only returns 7 or 8%. The 1 or 2% delta is not worth the risk, so prices have to reset to reflect this new reality.
Plus October is the month for crashes so this alone could be a self full filling prophecy.
On Thursday and Friday, prices dropped on increasing volume and today it rose on very low volume. Smart money let it rise to see how much demand there is before coming in with aggressive sell orders to drive prices down. If there is no demand at this level, it will take less money to make prices move down.
There was a guy on youtube explaining how the global financial system works and that China and Europe will be forced to sell Treasuries adding more pressure to bonds and finally causing the stock market to play catch up to bond prices.
If bonds is paying 5 or 6%, it doesn't make sense to risk money on equities if it only returns 7 or 8%. The 1 or 2% delta is not worth the risk, so prices have to reset to reflect this new reality.
Plus October is the month for crashes so this alone could be a self full filling prophecy.
On Thursday and Friday, prices dropped on increasing volume and today it rose on very low volume. Smart money let it rise to see how much demand there is before coming in with aggressive sell orders to drive prices down. If there is no demand at this level, it will take less money to make prices move down.