The $AGG(Barclays Aggregate Bond Index)is trading just below very heavy supply this week.  On Nov. 1st the index ended a four week consolidation(bear flag)with a downside break.  They may very well be in the early stage of a new leg lower(higher rates).  A drop back into oversold territory, similar to the conditions in late February, would drive the $AGG quite a bit lower.  It certainly looks like the $AGG Index is headed for its worst year in history:

Overall the stock market has weathered the interest rate storm extremely well.  Could it continue?  Certainly, but if this steady move higher in rates begins to accelerate a big rotation out of equities could begin.

At time of publication we do not have a position in $AGG.

Hat tip Charlie Bilello