Our bear-market target has been 129^03 for quite some time, but price action at the p midpoint of a lesser but even more bearish pattern suggests we should lower our sight to 127^16. As I mentioned toward the end of last week, this would equate to yields on the 30-Year of about 4.12%-4.15%, and 3%-plus on the Ten-Year. If the move happens quickly — i.e., this week — those who still cling to the absurdity that the latest housing boom is other than a dead duck are apt to capitulate, with very negative implications not only for yield-based calculations but for the broad stock-market averages as well.
