As persistent as the upside march of the stock indices has been since mid-December, so has the climb in longer-term interest rates (3.25% to 3.85% in 10-year yield). At what point higher interest rates and a sharply steepening yield curve negatively impact the attractiveness of equities is anyone's guess at this point.

The only thing that is certain is that such an inflection point is getting closer by the day. The UltraShort 20+ Year Treasury Bond ETF (TBT) has rocketed in sympathy with the climb in rates...and the vertical advance continues this morning with the price structure surging above 51.00 for the first time since last August. Based on the anticipated upside potential off of a 5-month base pattern, the TBTs are heading for an optimal target zone of 52.50 to 54.50.

Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com.