Elliott Wave Update ~ 27 June 2012

Primary count has not changed.

6 month rate. Working on a wave 5 of (1) up in yields.  This implies that the all-time low has been set.  If 3 month yields hit .5 to .6, the Fed will likely raise interest rates.  The FED don't control rates, the market does.  Greenspan has reiterated this many times. The FED is certainly a major player and a has an influence on prices, but ultimately they cannot control the interest rate market. Social mood ultimately wins out.

Current CPCE.  Certainly not at any kind of bearish extreme.