There's a renewed selling effort in U.S. treasuries and that's sending yields soaring. Bullish performance in small caps, transportation stocks (especially railroads), financials, industrials and consumer discretionary are painting a picture of a strengthening economy ahead and the selling of treasuries would certainly support that theory. With the FOMC meeting less than two weeks away, it's apparent that the bond market is anticipating another rate hike at the conclusion of the meeting. Traders are also pouring into financial stocks, particularly banks ($DJUSBK), as yields rise:
The breakout of the continuation symmetrical triangle pattern suggests we'll see further increases in the yield as we approach the FOMC meeting and with those higher treasury yields, I'd look for more money rotating into financial stocks. The positive correlation between the 10 year treasury yield ($TNX) and the direction of bank stocks is rather obvious and I'd expect it to continue into December.