The bond market is showing signs of reversing, the historic low interest rates, driving investors into the higher yields of junk bonds, has started a new leg down. Junk Bonds are leading the pack, the HYG chart illustrates the new trend.
The stock market, also poised for huge correction, in the next chart the Wilshire 5000 chart show huge upward wedge. The market fueled by nearly free credit supplied by the Federal Reserve, a rocket ship toward the heavens until interest rates reverse.
And the Global Dow chart is sitting on the uptrend line, it has not made new highs.
We are in unprecedented territory. Never before in human history have stock averages been this high or interest rates so low. Will the market reverse soon or even this year? It’s a gambler’s paradise, as the nation rots, Wall Street casino churns on.