Dow's up over 366 on the psychology pendulum effect.

In addition, markets are reassured about the bailout taking shape on breaking news that the SEC will offer guidance on one of the looming unanswered questions: how to value bad assets. This guidance increases the liklihood that a timely consensus can be reached.

Stocks like it obviously, and even though MBS like it too, this is only evident in spread. We're down over half a point now to 99-31+, testing the floor of our post-frannie/pre-bailout purgatory.

Additional reprices probable.