Friday was a relatively quiet day in the major stock market indices compared to the rest of the week. I would expect continued upside action over the next few weeks based on the strength of the market reversal off of their lows earlier in the week.
Long term interest rates have started back up this week as well and I think you will continue to see interest rates rise over both the intermediate and long terms as the weakening financial condition of the U.S. economy and its ever-spending government become more evident. The Chinese depegging of their Yuan currency from the U.S. dollar the week before provided a good reason as well as great timing for them to get rid of a huge amount of their worthless Treasuries since they are no longer needed to support their currency peg to the U.S. dollar. The smart money in the Wall Street either knew the implications and/or started seeing the Treasuries being thrown on the market and saw what that meant for interest rates (they will rise), which is very bad news for this feeble stock market. But as a side bonus for China ridding themselves of the toxic Treasury paper, the not so smart money rushed into the supposedly almighty Treasuries to seek safety from the crashing stock market. This provided a more liquid Treasury market for China to sell into without crashing the bond market. ZeroHedge had an article that said the Chinese sold 100 billion of their 1 trillion in Treasury reserves during this stock market crash period. This was a much faster pace than China has been previously selling their Treasury holdings over the last year plus period.
There has been speculation that China knew beforehand that their Yuan depegging announcement would create a serious disruption in the highly inflated, overvalued, low volume (August is typically a very low volume month) U.S. stock market. This would then provide them with a ready market to dump a large amount of their unneeded and unwanted Treasuries to buyers that had sold their stocks and sought shelter in Treasuries from the concurrent stock market crash. I tend to believe this supposition. China, additionally, has twice announced over the last 2 months an increase in their gold holdings. China knows that gold is a direct affront to these fiat currencies, particularly the highly perceived almighty but in fact very weak U.S. dollar. China probably has a good idea that the U.S. does not have the gold that they say they have since a large portion of it is probably sitting in Chinese vaults as well as other foreign vaults. There have been reliable reports over the last couple of years that China has been amassing much larger amounts of gold than they have recently announced. These amounts acquired by China over the years are much more than the annual mine production so the additional gold has to come from somewhere. That somewhere is probably the vaults of many western countries but particularly from the U.S., who will go to any lengths to support the U.S. dollar.
Measures to support the U.S. dollar include the government leasing gold (the gold typically never returns to the leaser) onto the market to suppress the gold price as well as starting war after war when smaller players threaten to diminish the use of the dollar in their trade. And one of the first things the U.S. government does when it starts one of their parasitic wars is steal the gold of the host country. Some have speculated that the Chinese announcements on their gold holdings and then the depegging of their currency from the U.S. dollar was done in retaliation for the IMF delay of one year in reviewing the Yuan being added as an additional reserve currency. But China knew that the U.S. controlled IMF was not about to add the Yuan as a reserve currency. This would have created more weakness in the U.S. dollar as world banks would exchange a significant amount of their U.S. dollar holdings for the Yuan. The U.S. was not about to let the Yuan in as an additional reserve currency and willingly allow further weakening of the U.S. dollar. That is not how the U.S. government operates in relation to the U.S. dollar (and in about every other matter as well) and they have proven they will do anything and everything including the starting of otherwise unnecessary wars by any means at their disposal. And those means at their disposal become much more limited if the U.S. dollar is weakened considerably.
So yes there are financial, overt military, and covert government wars (including against their own citizenry in many cases) being perpetrated by the owners of all the major fiat currencies in efforts to maintain their systems and the excessive power possessed by the relative few at the top of these purposely designed pyramid structures. Countries at odds with the U.S. (which include many at this late date in the U.S. quest for world domination) realize that the over indebted government and the now almost consumer-less consumer economy of the U.S. is very vulnerable to financial attack. But to be clear the U.S. government is not falling to exogenous forces but to its own repeatedly self-inflicted wounds incurred over the decades in its quest for absolute power and profits for its cronies.
So yes, interest rates will continue to rise. My earlier ETF recommendations of TBT (Proshares Ultrashort 20 year Treasury) and TMV (Direxion Shares Trust 20+ year Treasury Bear 3X) should allow good points of entry in this area.