This morning showed a drop in the rate of the 10 yr. note, putting pressure on the stock market.  Recent patterns have shown that the market will most likely not show recovery from this until the final hour of trading.

This week has numerous key economic measurements:

• March housing starts and permits.
• April NAHB housing market index.
• March industrial production and factory use.
• Philly Fed's business index.
• The Fed will release it's Beige Book.

Tensions between the US, S. Korea and N. Korea remain at high levels, but global markets are not showing much concern as of yet.

Traders are continuing to play the stock market against treasuries and as this week is very active with the release of each data point having the potential to swing the markets.

WE EXPECT AN INCREASE IN VOLATILITY THIS WEEK!

- Nancy Bierman