November 3rd Mortgage Market Wrap-up

Mortgage backed securities (MBS) closed up 16 basis points today at 100.91 having broken above resistance at both the 25 day moving average and the 101.00 level before falling all the way down to the 50 day moving average.  After an initial positive reaction to the Fed quantitative easing release, bonds plummeted downward only to bounce off the 50 day moving average and close above the 25 day moving average.  After all that, today's candlestick tells us that the market appears to have lost its direction.  Do you think?  At the end of the day, a 30 year conforming fixed mortgage was available at 4.125%.