Happy Friday the thirteenth and Valentines eve. If red is in vogue, then both bonds and stocks have dressed appropriately.
Stocks off 42 points on the big board, the 10-year note down 1 point( yield 2.85%), 30-year bond down 2 and 3/4th point (yield 3.60%), and mortgage backs off a smooth ½ point.
The University of Michigan Sentiment Survey, which was expected to rise 1 point, fell 5 points to 56.2. Most components of the survey slipped since January, portraying a consumer who is hunkered down in preservation mode. Technically, the big picture has improved for the bulls (rally lovers) with the rebound we seen over the past week. The short term however is overbought, backed by Elliot Wave patterns favoring the correction.