Markets are starting the day with stocks lower and mortgage bonds slightly higher. Stocks have closed positive for the last six weeks, but are now sitting at a crucial point with the S&P 500 backing down from resistance at 1420. Foreign markets are lower for now as well due to the ECB’s lack of clarity with bond purchases. Europe continues to be the cloud of uncertainty hanging overhead, as well as a threat of unknown magnitude. While stocks are sitting close to 4 year highs, its hard to see a big move higher given the recent disappointing economic reports, not to mention the political circus we will experience for the next few months. This week is very light in terms of economic reports, with the exception of tomorrow’s release of the Fed minutes. We will advise a very cautious floating bias on new transactions.