Markets In Neutral Stance Ahead of Next EU Tape-Bomb

After yesterday's impressive rally in bond markets, we noted that technicals seemed to most strongly suggest a sideways trend in effect since roughly 10/7.  That would make sense given the massive amounts of anticipation associated with today's EU Summit (dare we say "too much?).  But it would also suggest that 10yr yields were due for some sort of a bounce around their 2.109 resistance level and that MBS would also risk bouncing lower as they reached the top of their range.  While both of those things have happened this morning, it's been "orderly" to say the least.  Both markets are still trading quite well and both markets only retraced to the mid-point of their respective ranges:

The range in MBS is actually slightly positively sloped!  We can continue to keep an eye on these trendlines as a rough approximation of "good, neutral, bad."  In the upper half for now = doing good for now.

But the most important line in the sand to watch (or line(s) rather) would be in stocks.  S&P's are struggling with holding the line around 1230 at the moment and have a major pivot up around 1255 that they failed to break earlier this week.