The markets close early today, and will be closed tomorrow in honor of Good Friday. Traders tend to hedge going into three day weekends, so there could be a little selloff today. On top of that, you can see from the above graph that the pricing for mortgage funds is again at YTD highs and ripe for a correction. To the contrary, and keeping us pegged at the current ceiling, are a couple of things:
1. Talking monetary policy last night, President Trump said that he favors low interest rates, thinks that the dollar is too strong, and is undecided on whether or not he will swap out the current Fed Chair when her term renews next year.
2. The Producer Price Index released this morning showed that the cost of making new stuff declined -0.1% last month.
3. Initial Jobless Claims are at low levels not seen in 40 years, when the population was not as numerous