I know this is a lot of technical information, however its dead on as to the market reaction today which caused the stock market to drop 3.13%.

The US dollar was hit with a "perfect storm" of a shockingly high 0.5% monthly rise in the Unemployment Rate to 5.5%, comments made yesterday by European Central Bank (ECB) President Jean-Claude Trichet on the possibility of the ECB raising interest rates, and rumors of a potential Israeli attack on Iranian nuclear sites. All of these combined to send the dollar plunging against foreign currencies. This in turn resulted in crude oil soaring to a record-high daily gain of over $11 per barrel to reach another new record high close to $139 per barrel. Along with the rise in the unemployment rate, today's record jump in oil prices crushed the major stock market indices, erasing all of their nice gains from yesterday and then some. Bond's benefited from the carnage that took place in stocks with our benchmark 5.5% FNMA coupon bonds gaining 31bp to close at $99.22 after another wild day of price swings that took place within a 69bp intraday range. The Dow Jones Industrial Average ended with a loss of 394 points to close at 12,209.  

Mortgage rates will open slightly better than they closed at today.