Quiet day, floating bias

Economically, it’s a quiet news day with no reports on the schedule.  Stock indexes opened positive, with the exception of the Dow being slightly negative from IBM alone.  The S&P 500 traded right down to its 50 DMA yesterday, so this is a critical level to watch because it will influence bonds as well. The S&P started the week around 1590 and closed at 1542 yesterday. mortgage bonds are above their 200 DMA, so we will maintain a cautious floating bias at this time.