The markets are acting fickle this morning with > 1% drops in most of the X sector ETFs, except XRT and XLF, which is only down 3 tenths of a percent. Nevertheless we are seeing a strong momentum reversal based on technical resistance levels and uncertainty about the longevity of the FED's buying program.
The situation with the VIX mentioned yesterday was a telltale that something was not right with the bullish action and today bears witness. The VIX is up 7% as of 90 minutes in.
Bonds took a tremendous hit yesterday but are showing some modest recovery today. The 4 lowest ranked ETFs.. IEF, TLT, XLU and GLD continue to falter although all are overdue for a bounce. XLU...which had been the darling of several of the model portfolios is now profoundly downslope.
Despite yesterday's pop the 4 month P6 has been downslope since the May 20, which was a sign to move to cash and defer any new positions.
Note the action on the SPY TrendX chart in the right hand panel >>>>>>>