Bond Rally Steepens The Curve

U.S. stocks popped higher in the first half of this week, pushing the S&P 500 above the 1150 mark and out of the congestion zone where the index had been trapped the last few weeks.  The action is clearly bullish, suggesting more short-term gains are probably coming, but we would still like to see more trading volume.  The rally is what it is, however.  Bears are on the defensive.  Their best hope is for the impending earnings reports to be unexpectedly dismal. We have said many times that real estate, particularly residential property, is key to economic recovery.  An unfolding legal battle may stretch the pain out even longer.  Major mortgage lenders are facing allegations of fraudulent home foreclosures.  Much… . . . → Full Story: Bond Rally Steepens The Curve