Tuesday, May 5, 2009

Rates Setting up for New Move?

The stock market has come down some since Ben Bernanke began speaking. Rates are also moderating but still holding at the 3.15% level. While it is still early in the day, we can see the development of a potential move tomorrow.

If the chart pattern remains similar to how it appears now, we can expect that tomorrow, we will have a three-day test of the highs. I suspect that rates will surge through to higher levels and may take some action to play this potential move. Should we not make a new high on the move, rates might fall back, perhaps to the 3.04% level I had seen at the beginning of the week.

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