The good news is that today's 10 year yield chart shows a five down trend. The bad news is that the one year weekly trend line is breaking out to the upside.

Actually, the bad news might be a little worse because the TNX has had a 4 month sideways pattern. From a technical standpoint, the longer a sideways trading range, the larger the breakout can be. So, we have a sideways trading range breaking above a 4 month resistance line. Unless Bernanke can contain this move within the next few days, he will lose control.

Such an event would be bad for the economy because higher yields means higher interest rates for borrowers. Yes, higher interest rates are good for banks ... that is unless they get too high and choke off consumer borrowing and spending. Bottom line: It is now time to keep an eye on interest rates in the near term.

And while you are at it ... keep an eye on the 30 year yields ... symbol: $TYX. The TYX (which also relates to mortgage rates) is jumping higher and 34.62 and 34.75 are important numbers to watch.

Why? Because if the 30 year yields continue to rise after that level, they can go a lot higher with Bernanke losing control.

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By Marty Chenard
http://www.stocktiming.com/

Please Note: We do not issue Buy or Sell timing recommendations on these Free daily update pages . I hope you understand, that in fairness, our Buy/Sell recommendations and advanced market Models are only available to our paid subscribers on a password required basis. Membership information

Marty Chenard is the Author and Teacher of two Seminar Courses on "Advanced Technical Analysis Investing", Mr. Chenard has been investing for over 30 years. In 2001 when the NASDAQ dropped 24.5%, his personal investment performance for the year was a gain of 57.428%. He is an Advanced Stock Market Technical Analyst that has developed his own proprietary analytical tools. As a result, he was out of the market two weeks before the 1987 Crash in the most recent Bear Market he faxed his Members in March 2000 telling them all to SELL. He is an advanced technical analyst and not an investment advisor, nor a securities broker.

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