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Intraday Credit/Mortgage Weakness
Equity markets may need to be reigned in a little - after the recent drop in mortgage rates and a steepening of the bond curve (thanks to a not insubstantial drop in equities), the S&P target makers may need to adjust the target for equities again. With the S&P running higher for the day, both the 2s10s is steepening and mortgages are starting to run wider. Time to take the market lower to see at what level we get a new equilibrium. Of course the best outcome, would be to find at what price level the S&P can be gently nudged higher without corresponding leakage in mortgages and bonds.
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