Candlesticks point to rally in US rates

US interest rates are going much higher, says Walter Zimmermann, Senior Technical Analyst at United-ICAP.

Zimmerman notes that a hammer candlestick was posted for October for the 10 year T-note Interest Rate and is arguably “the most bullish monthly candlestick ever” for this market. Likewise, an extremely bearish shooting star top occurred on the monthly chart for the Thirty Year Treasury Bond. Taken together with the wave count, the message is “that interest rates are going much higher.”

See charts for 10 Year T-Note and 30 year Treasury Bond.