Our multi-factor model score for the XLI has dropped to a weak score of 2.75 from a bullish 5.90 1 month ago. 

This is a big improvement in how we score the absolute and relative trend of the NDX. 

The weakness in the financials was highlighted on our Technical Tuesday report this week and we believe this will expand to much lower targets.

Yesterday's reversal wasn't a big surprise as a number of indices were up into either an ellipse sell zone, 200-day average, or upper end of their channel resistance.  

We got stopped out of our short that we put on March 13 when the Q's appeared to stall into the MOB target band for a -1.7% loss. The Q's are up into a 0.618 retracement level of 171. which is the maximum amount given for a retracement level on a counter-trend move.

The QQQ is into a MOB target band and starting to reverse.

The chart of the Nasdaq Composite is similar to what we are seeing in the SPX, MDY, NDX, except for the Russell 2000, which is in a weaker position.

We have an ellipse sell signal generated today along with price reversing at the declining 50 day ma and the upper end of the regression trend channel.

We will use a tight stop just above the blue ellipse sell signal as seen on the chart. In our alpha capture portfolio, we are also short the following European indices, CAC 40, DAX, Amsterdam (AEX), and shorting the FTSE MIB this morning. Happy to help with those ideas for anyone interested.

The pictures we present in the following pages will speak more than words. Even a one-eyed technician with a crooked ruler can determine that trend structure remains very weak across the major U.S. indices we review here.

The pullback in the 10yr held at trend support and held the ellipse.

We are closing out the remaining portion of the TLT long. There is a sell signal setting up that will trigger if price breaks 138.60. This appears likely so we will take the gain.

The recent rally got price up into the initial fib level of 142 which is where we indicated to take partial profit. We will do so now and leave some long on for a potential pop above the 50-day and a move towards 145.

The S&P 500, NDX, and Russell 2000 have rallied sharply in the last few days and have all have come into an area of resistance and have ellipse sell signals

The SP 500 emini came back up into the MFU-2 area and reversed near the yellow ellipse sell zone.