Posted To: MBS Commentary

Yesterday brought a fairly significant sell-off to the bond market and a slightly less significant rally to the stock market. Granted, the 4% improvement in the S&P sounds like a pretty big deal, but in this case it barely got stocks above the circuit breaker levels from Sunday night (levels so low that they resulted in trading being halted. Now this morning, stocks have clearly rejected yesterday's suggested bounce, effectively using previous long-term lows as a ceiling. This is a classic "pivot point" from a technical perspective, and it becomes a key level to watch in the S&P going forward. A pivot point is not an unbreakable ceiling, but rather, a more relevant line in the sand that tells us more than other levels in the event it's broken. It could be a coincidental…(read more)

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Source: Mortgage News Daily