"THE" SPARK THAT WILL LIGHT THE FUSE?

And I think the weekly chart also supports the nod goes to higher rates. The 20 wk is beginning to rise and the 50wk is flattening, but they create a rate sandwhich, from when broken I think we will know the trend.
This is all coming to pass as we prepare to enter OCT.
What we do know.

1) TA suggests higher yields more likely than lower
2) Possible rounding bottom ”saucer” formation a POWERFUL bullish indicator
3) Long rates follow short rates, short rates rising
4) Demand for credit rising, federal deficits endless
5) Foreign purchases of bonds near $60B a month last 3 years, 10 yr prior avg $38B
6) Katrina will put an unseen but addt’l pressure on US debt expansion
7) Historic measure of total credit market debt have been obliterated by 30% (prior top in 1930) and what will end its expansion? I can think of only one thing, higher rates.
8) Chart below shows how the RISING 20 EMA is supporting rise and it went through the rising 50 EMA ! 4.618 is a spit away!

Now the approaching 200 SMA may repel advance, but at least we have parameters to watch, which may come to pass if flight from potential weak stockmarkets find home in safety of bonds. WEAK consumer sentiment and a few other data points that normally aid bonds did not do so on this recent uptick.

Duratek