Markit Indices are bullish

While the financial sector imploded over the weekend, both the asset-backed and commercial mortgage backed bonds seemed to have turned a corner last Thursday, at least according to data provided by Markit

This should bode well for equities, as both of these markets are highly correlated with stocks.

Here's Markit's commercial mortgage backed AAA bonds index -- node th spreads have been pulling back since last week




And here's Markit's asset-backed AAA bonds index -- prices have rallied since last week.



For reference, here's SPX over the same timeframe