Bonds had another nasty drop yesterday after after an attempted rally. Traders call this setup the "trap door" because just when you think a bottom buying opportunity has developed, the buying suddenly evaporates and a new low is reached. TLT has now attained that status and has been driven down to the 116 levels, which have provided support in the past so we may now be seeing a more realistic bottoming setup.
XLU, which has gotten hammered over the past few sessions is also on the comeback trail
Over on the X sector portfolio not much has changed, with the retail XRT showing the best momo followed by XLY (consumer discretionaries), XRT's closest functional ally. XLF is trying to nudge into a top 2 position but market sentiment is favoring retail for now.
