23 Sep Bonds trying to push higher
Markets are starting the week with stocks lower and bonds trying to push higher. Both the Dow and S&P 500 hit their all-time high’s on Wednesday after the Fed announcement, but they have since moved back to pre-announcement levels. Perhaps the other looming issues, like the inevitable political battles regarding Obamacare and trying to avoid a government shutdown, are reigning in the euphoria. The S&P 500 is up more than 21% year to date, so protecting gains should not be a surprise. The rest of the week has economic reports scheduled everyday, so there will be catalysts to move markets. mortgage bonds are pushing up against the 100 DMA, which is also right at the top of the trading range. History has shown this has been a good place to lock, but rates could push lower if stocks remain under pressure.