Either Bonds Rip or Stocks Crater, Ready for 5pc on the 10-Year?

That's a really bad h-pattern forming. Not for ZB so much as the financial markets. The h-pattern on ZB could fail and bonds could rally. If ZB breaks down though, the housing market, stock market and currency markets are all in trouble. Commodities too, either because they're going to rip higher and trigger more inflation or they're going to start collapsing as rate hikes finally kill borrowing and economic activity.

A breakout of the 10-year yield would accompany a new low in bonds. The next target is far away on ZB and ZN. The first fib extension off the base on ZN would target around April 2002, or when the 10-year yield was above 5 percent.