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The chart pattern consists of two key components The rolling over price action nature of the inverted cup and the failed rally in the inverted handle The cup part of the formation is created when profit taking sets in on every attempt to make a new high in price and the market begins to slowly go into a distribution phase instead of rallyingThis is known as an inverted yield curve, or a yield curve inversion, and it's usually bad news An inverted yield curve is mostcommonly measured in the United States by the difference between 10year and 2year Treasury bonds Normally the 10year bond has a higher yieldBut, it does look like the excellent track record of the Inverted Yield Curve is going to stay intact Why Does The Yield Curve Slope Predict Recessions Federal Reserve Bank Of Chicago Inverted yield curve chart 2021