US02Y/US10Y bonds signals end to market rally. Bear Flattener

US02Y up ~6%
US10Y up ~0.12%

Definition of a Bear Flattener = market go down.

Is it a perfect indicator? Of course not. But the tendency is that bear flatteners mean money is coming out of the market and going into short term bonds where it can come out of the quickest if market turns around. So the short term bonds act as a kind of pump/dump for the market. We are getting bear flattener headwinds ahead of CPI print next week.

Next week maybe market flattens out, momentum dies, slow stochastic falls below 80, and price sets up to go below prior "higher lows".

Keep on alert.
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