Locking Bias

Stocks are about even after last week’s slide lower.  The last five trading days turned out to be the worst week that stocks had seen all year, with the S&P 500 dropping right down to its 50 DMA.  Existing Home Sales came in lower than expected this morning, but not much lower than estimates and certainly not low enough to ratchet stocks down a level.  mortgage bonds are holding steady for another day so far, as has been their pattern for the last 6 trading days.  The bond market also faces $99 billion in auctions this week.  With stocks looking to stop the slide lower, we will suggest a locking bias.