TNX - perhaps the most important indicator of market direction.

My thesis, which is backed up by tons of facts including record use of margin, is that the markets have no real fundamental other than the cost of borrowing money.  As long as interest rates are low, remain low, and do not threaten to go higher, the markets will rally on completely borrowed money.  This is why the collapse, when it sets in, will be so swift.  Everyone will be wondering how their fav company, with all of its "great fundamentals" is going down.  They do not understand that the global economy is a massive debt Ponzi and that the only thing that matters now is our ability to take on increasing amounts of debt AND to be able to make the monthly installment on it in order to go gambling with trillions of dollars.  When interest rise, the gamblers will have to sell their debt-purchased assets in order to keep up with the monthly debt service. 

To that point I add yet another chart that has a perfect setup for reversal: the 10 year treasury bond rate ETF (ticker TNX).  The dramatic rise in stocks today exactly matched the huge gap down in interest rates.  Coincidence?  I think not.  At the same time, we have a possible ending diagonal setup.  The 5th wave has thrown under the perfect amount and is now looking to be rounding the corner.  The confirmation for reversal here would be a break back up into the channel and then a break of the upper channel, perhaps on high volume.

If this happens it will also leave TNX with a perfect inverted Owl: ye olde inclining double bottom.  Watch for this as it is more important than anything anyone is saying on CNBC or anywhere else for that matter.  They say money makes the world go 'round.  So, cheap money make the world spin so fast that the bearings overheat leading to an eventual but sudden break down.

If this ending diagonal is to be credible, it has to reverse very quickly - within 3 trading days.