And you were worried about the market impact of 10-year Treasury yields north of 3%. That was so two weeks ago.

"The bond markets were recently getting obliterated, in our view, but the tide seems to be turning for the summer months," says Bank of America Merrill Lynch technical strategist Paul Ciana. "It could be a long summer so 2.70%, 2.63%, 2.57% and 2.43% are the next resistance levels (yield support) to know as deeply net-short Treasury yield positions are at risk."

For good measure, Ciana adds that 10-year yields have been "devastated." Political chaos in Italy and renewed fears of a U.S. trade war with China has sent investors scurrying back into safe-haven Treasuries, which has sent yields sharply lower.

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"Risk off tones sent markets scrambling to buy U.S. Treasuries leading US 10 year yield to plunge below trend line support -- the chart below highlights the positioning squeeze that could be underway as MACD and RSI rollover with room to fall," explains Ciana. 

Yields have come under pressure. Source: BofA

The pullback in rates isn't great news for big banks such as JPMorgan (JPM) - Get JPMorgan Chase & Co. (JPM) Report , which often earn higher profits when rates are rising. But, the shift could be a welcome development to housing stocks like Home Depot (HD) - Get Home Depot, Inc. (HD) Report and Tolls Brothers (TOL) - Get Toll Brothers, Inc. Report -- shares have been pressured since March as rates began their climb to the 3% level.

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