View: content.screencast.com/use...8/TNX1987.jpg
content.screencast.com/use...8/TNX1987.jpg
A look at the 10 yr yield in 1987. Similar setup to today. In 1987, the key breakout was just under 9%. This would parallel today's 3% yield. From there, yields rose sharply in Sept 1987 from 9% to 9.5% in a week. After consolidating for a couple weeks, they continued to rise quickly into mid-Oct to 10.25%.
In today's world, a similar setup would see us rise quickly to 3.5%, have a bit of consolidation, and then rise quickly to test the long term downtrend line in rates, just under 4%.
Again, target is not the 35% SPX lost in 1987. I'm only asking for a measily 25% drop to RUT 900. Happy New Year!
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