November 1st Mortgage Market Wrap-up

Mortgage backed securities (MBS) closed down 47 basis points today at 100.28 having once again fallen through support at the 50 day moving average.  During the day, prices climbed at the way up to resistance above before closing at the the lowest level of the day.  This is known as a "bearish engulfing pattern" and in a normal week would not bode well for bonds.  In this week fraught with high importance economic events, however, technical factors may take a back seat to economics.  This week's big three economic variables are the election, the Fed's announcement on Wednesday and Friday's jobs report.  Fasten your seat belts!