The market was stunned but not surprised by the move from S&P to downgrade the US outlook from stable to negative. This drove the dow down over 200 points and bonds followed along by following from recent highs down to clinging for support at 101.70. Interesting? Not sure I have seen this in my years as a life long economic student. On one hand, you could make a teeny arguement that this is good for bonds, as our AAA debt rating was not cut. On the other hand...one could fear next the debt rating gets cut. This would be a disaster!

Light news week. Mostly housing related and most of us are not looking for any great news in these reports.


Watch 101.70, if we can hold that and get over what happened this morning, we will once again test 102.00.


This could go either way, once again we float in uncharted waters.


Have a great week!