Thursday, April 28, 2016

MBS Day Ahead: Chance to Confirm Post-Fed Bounce

Posted To: MBS Commentary

Bond rally following yesterday's Fed brings trading levels right back to the top of the previous range holding ground today with modest gains would be great breaking back below 10yr yields of 1.80 would be better simply avoiding the early March precedent would be good What is the "early March precedent?" March 1st marked the beginning of a sell-off that was very similar in shape, intensity, and technical significance to the sell-off that began on April 20th. Both sell-offs put in 4 more days of weakness after breaking above the 21-day moving average (middle line in the Bollinger Bands overlaid on the candlesticks in the following chart). Both sell-offs then encountered a strongly positive day. In early March, it was the 8th. In the current sell-off, it was yesterday's Fed...(read more)
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from Mortgage News Daily http://ift.tt/26wTIdv

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