The three decade + trend for bond rates has been downward. In June, we witnessed the first rise above that trend line in recent history, followed by a return to the trendline last week. This is a pivotal point for both bonds and stocks. If stocks drop back down below the trendline, we can see the market go higher in the near term. If the 30 year bond rates rise this, we can expect a downturn in the stock market.
Prediction: Bonds will trade sideways before going up. Stocks, already with substantial momentum, will continue higher, until bonds resume an upward momentum, confirming that the stock bullmarket is over. This may last up until the Fed raises rates in September.
Prediction: Bonds will trade sideways before going up. Stocks, already with substantial momentum, will continue higher, until bonds resume an upward momentum, confirming that the stock bullmarket is over. This may last up until the Fed raises rates in September.