Florida Mortgage Market – Forecast for the Week

by Florida's #1 Mortgage Planner on April 7, 2008

Where do bonds go from here?  Will they maintain their sideways trading pattern, or is a breakout inevitable?

The week ahead does not have much "regularly scheduled programming" of data with the main event being Tuesday’s release of the FOMC Minutes, the inside look at the Fed’s thoughts at their last decision.  Since there were two dissenting votes instead of just one, the inside scoop could move the markets.

There is not much coming this week.  That does not mean market movers will not show up elsewhere, such as Fed speeches, etc.  It does mean that technical indications will likely play a larger role this week, so they are worth looking at.

Stochastics show bonds to be in an overbought condition, so a correction is likely.  Bonds are currently trading in the middle of a sideways pattern that is nearly 150bp wide, allowing significant movement within and not breaking the pattern.

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