Bonds "Bull Flag" Break Could Accelerate Downside QuicklyI find the position of Bonds very precarious going into this week. I've heard it said that Bonds are are in total "hands off" mode or "anything but bonds" is said right now. Nobody wants them... and if they fall fast it could literally cause a "Bond Crisis." So this is going to be an important watch.
In the shortest time frame I see a potential Leading Diagonal down, which has a very small correction 50% maximum) already started. My stop is above 62% of this tiny decline. If the natural targets of this leading diagonal are hit that points to a very fast move of 3 points to the 123% - which will be a definitive break of the bull flag. And I think that will create the 1st wave of an extended 5th wave which could target 3.6 or 4.6 extensions for the larger 1-2. That would be a fall of 7 or 11 points and basically 5% yield.
...Which could be dubbed a crisis in the short term.
