• 4.5 MBS UP 16 TICKS AT 101-18.  WERE AS HIGH AS 101-25
• 10YR NOTE YIELDS DOWN ALMOST 20 BPS AT 3.38
• DOW'S DOWN ABOUT 425.  HIGH OF THE DAY: 10880.  LOW OF THE DAY: 9870
• TALKING HEADS PASSING THE BUCK TO BLACK BOX TRADING.
• REMEMBER THAT PERFECT STORM THAT MIGHT HAVE BEEN FORMING? 

Even on that big tank in March 2009, we've never seen anything like this...  

Look at what today has done to long term charts.  (I'd give you a short term chart, but it's just a line going straight down and some flames shooting out from both sides).

In an even wider view, we can see that this sell off in stocks now ranks with the big boys in terms of price loss, and with a few more days of staying power, will be the most significant sell off seen since March 2009.  I'm not even confident NFP will matter...  For the S&P, getting to 1148 would be good, but may be resistance.  Same with 1162, but even more important.  1063 is strong low end support if things stay crappy for stocks.  Breaking that is a technical vote for a double dip.

MBS and Treasuries are both at their best levels of the year.  Intraday, treasuries got as low as 3.29.  Yeah...  Seriously...

Longer term view is more telling:

Reprices for the better and reprices for the better.

While typing, the dow is up to 10501, only down 362 on the day (only!).

MBS and treasury price levels are still strong despite that.