Some Rate Sheet Improvements As MBS Hold Gains

The most recent alert and market snapshot from MBS Live:

MBS Hit Highs of The Day. Potential Rate Sheet Improvements 2:08PM

We've seen a few reports of reprices for the better so far today and more are possible as long as Fannie 3.5's keep operating near their highs of the day. They just hit 101-31 but have since fallen to 101-28. The modal high of the day at 101-29 seems to have been offering a decent amount of resistance versus the well-defined uptrend that's persisted since the 10am hour. 

The S&P is just off its lows of the day at 1186.38 and 10yr yields are at 1.9533 after another brief test of the 1.95 resistance level moments ago. The longer MBS hold the 101-28 to 101-30 range, or if they happen to make additional gains from there, the greater the chances of additional reprices.

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To emphasize the "snoozer" phenomenon in 10yr yields, here's that longer term 10yr chart we've been using the past few days: just cruising along the bottom of their recent sideways trend (all month actually)...

For a more interesting example of technical market movement, here's an update on the S&P triangle discussed last week.  Definitely broken...

After the break, there are 17 million different ways to look at what stocks are or might be doing on a technical level.  All manner of moving averages have either been broken or tested (including LONG term MA's).  Thing is...  NONE of those have been great indicators of market movement BOTH in the recent past and more distant past.  Ideally, I'd like something to have "worked" almost ALL the time without having to make excuses for it before I flat-out RELY on it to offer any significant statement about the present or future.  So how about we go with a simple bounce at the lower limits of the bearish trend that began in late October?  We'll be better able to entertain other technical developments next week.