Morning Corner 2.4.11

10 Yr Note (weekly info)
-no change (below mid)
trend=down
low= 119.594
rev= 123.578; mid= 121.586



This week is forming a bearish engulfing candle. In an uptrend this would be seen as a reversal. If in a trading range then I'll say the decision on direction has been made. With the 10yr and 30yr yields increasing something will have to happen to get traders to start buying bonds. If not then mortgage rates increase and homes sales are history. There goes what little "recovery" we had.



30 Yr Bond (weekly info)
-no change (above mid)
trend=down
low= 120.094
rev= 121.594; mid= 120.875



We are now below the 50% retrace and about to break below SMA(89). The Bernank needs to stop speaking. Every utterance sends the bonds lower. Or is it a subtle way of letting The Bernank know that he does not have things under control.


S&P TMI (weekly info)
-no change (below mid)
trend=up
high= 1474.83
rev= 1416.57; mid= 1445.70



This is the S&P Total Market Index. It's made up of the S&P 500 and S&P Completion Index. I think of it as the S&P version of the Wilshire 5k. Last week formed a gravestone doji indicating it did not want to go lower. This week has confirmed the candle. The gravestone doji is usually a reversal candle in a downtrend. Since we were in a small range it acts as the absolute floor for the range. That's until it gets taken out.

The Bernank must really "Believe the Lie"