Watch the ten year treasury, fed is about to lose control of the bond market.

In this post I provided the chart and model of the 10 year treasury (ticker TNX) which is shown below.  The key point was that the E wave should be made up of 3 waves since it is part of a triangle.  I wrote (highlight is new), "If this speculation turns out to be correct, the likely path will look like one of the blue lines.  The red E wave will either end mid channel (a failed E wave) or it will touch the bottom of the channel and spring up or it will undershoot the bottom of the channel (throw under) and then shoot up."

Well darned if the current chart below doesn't look like an a-b-c with a spike down to center channel....  That little spike and recovery is a strong sign that the bottom is in for the 10 year.  It's all up hill now and it should break out rapidly.  If you think your house is an investment, sell it now because higher rates make the monthly less affordable and that is happening right into the teeth of the economy (read jobs) rolling over.  The jobless rate is about to soar.  In fact, it has always been much higher than reported.  Now it will simply begin to be more truthfully reported along with massive corporate layoffs.  The eventual unemployment rate in the US will be higher than it was during the Great Depression (25%).  This is how the social change will come.  Without two cars in every driveway and a chicken in every pot, the sheeple will not be so easy to manipulate and to lie to as they were before.

Interest rates are essentially an inverse measure in the confidence of the issuing authority and confidence of the US fed is about to plummet globally.  Higher rates of return will be demanded in order to take on US debt and it is the debt service that will eventually cause the US to default in some massive form or fashion thus leading to global economic chaos.  Not this year, not next year but perhaps by the end of 2017?  I don't count that out.