T-bonds have declined around 8 percent since October 14th when we exited our long positions. They are probably due for a bounce from the current area. The Fed still has four months of buying in front of them. On the other hand this is not a buy and hold area.
The uninterrupted rally in socks since September 1 on QE2 and the tax cuts is rather long in the teeth and while defying technical levels still has its support base well below current levels. The 1070 to 1290 S&P range for the next 18 months that I mentioned recently still holds. Obviously, market traders feel confident that they will get some warning as to when to get out.