MBS Live Recap: Bounce Back is a Matter of Perspective

Corrections and consolidations are a natural part of market movements.  It's uncommon for losing streaks to last more than 8 straight days without reprieve.  The most recent losing streak lasted 10 straight days and was finally ended by today's gains.

While that makes today a big win in and of itself, we'd need to see a few more days with similar progress before we can consider today as something more than a correction inside the trend that's been intact since early July (red lines in the following chart).  At the very least, we need to see a break below the white line (a pivot point that had been separating 2016's floor/ceiling levels until it was broken last week) before getting too optimistic.