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Today's action is a continuation from yesterday's sell off.  Nearly giving back the gains after the good employment report.  As I mentioned yesterday, the VWAP levels from the employment report served as a good indicator for selling to accelerate.  The good old FANG stocks are doing their part to try and hold things up with gains of nearly 1% while the S&P is down about .40%.  Getting hit hard today are banks (including regional banks), transports, materials, retail and Boeing.  As discussed often, the crazy narrow attribution within the Dow has seen BA attribute at the recent peak 6x the next largest attribute.  It's still 1 1/2 greater than Goldman Sachs despite BA pulling back pretty hard.  The top 10 largest weights in the S&P equally weighted still remains 1.8% above pre employment report while the NDX is .88% above, and the S&P only .50% above that level.  

Sentiment recently spiked rapidly back above 70% and some pullback was due from my experience using this data.  The S&P is back down to the 50 day and many people will be watching that level too.  Old resistance is now support.  I still believe lower lows are ahead and don't be surprised if the selling picks up as we've seen the liquidity in the futures market remains thin.  I would strongly advise raising cash if you haven't yet, tighten stops on longs, and to selectively own index puts with a small manageable size.  

Notable:

• US Markets - Sentiment backed off from highs.  
  
• European Markets - Still a little early to sound all clear
  
• Retail Sales - Today's big miss should not be a surprise
  
• Bloomberg World Index - Still more work to do on the downside
  
• US Market Capitalization - Looks like a major top is in place
  
• Bitcoin - A DeMark lesson
  
• Financials
  
• Semiconductors
  
• Bonds
  
• DeMark Screens
  

SPX bullish sentiment is at 63% down from 71% the previous day.  Breaking 50% will likely see sellers head for the exits

SPY daily with counts visible show this on day 7 of 13 with a downside red Countdown and a green Setup on day 7 of 9.  Quite the battle.  If the green Setup completes and closes 9 consecutive times above 4 previous closes then the red Countdown will be null.  As of now the SPY will move higher in the next couple days.  As usual I'm all over it.

SPX wave pattern still is in play with a downside wave 3 price objective at 2400.  The wave 3 would lock in with a close under the 2/8 close at 2581.

Nasdaq bullish sentiment is at 67% down from 77% the previous day.  

QQQ Nasdaq 100 has been the strongest of all the major US markets due to the concentration of mega weights.  It's about 4% above the 50 day moving average and expect to see the 50 day touched again soon

This is a custom index of the S&P top 10 weights (equally weighted) and it barely has retraced anything like other indexes.  When these big weights give up, look out below!   The S&P is nearly at the 50 day while this is 6% above the 50 day.  

FANG+ is on day 8 of 9 with a green Setup count.  It's 9.2% above the 50 day.  People are hiding in these tech/consumer names and it's obvious.  

IWM Russell 2000 is on day 5 of 13 with a downside red Countdown but on day 8 of 9 with an upside green Setup.  One of these counts will be gone tomorrow as the green Setup needs another day with it above 4 previous closes.  That's going to take some muscle

The Dow Jones Industrial Average is the weakest of all the major indexes.  The downside wave 3 price objective is 22,157.  I expect this index will hit circuit breakers -1800 soon.

Boeing has broken the 50 day moving average today and could make a 9 week closing low this week.  This was the reason the Dow went up so much and will also be the cause for it to go down too

AAPL reached a DeMark Trend Factor target and reversed.  So far this holds up OK and it's nearly 4% above the 50 day.  

Euro Stoxx 600 still looks risky as it's on day 10 of 13 with a downside Countdown

Euro Stoxx 50 doesn't have a count but continues to make lower highs.  3300 is important support

This is my basket of 14 big retail stocks that is below the February lows and most have reported weaker earnings or guided weak.  

Today's retail sales number for February "surprised" missing espectations of +0.3% and reported -0.1%.   Considering all of the companies have been talking about weakness, is anyone really surprised.  Bars and Restaurants continue to lead while autos and parts dealers is very weak.

XRT Retail ETF was left for dead last Fall but had a "better" holiday season with such low expectations.  It's currently on day 8 of 13 with a downside Countdown

Amazon continues to move higher although it's now on day 8 of 13 with an upside red Countdown and green Setup on day 8 of 9.  The green upside retracement Trend Factor hit top number was at 1617 right where it stalled the other day.

The weekly of the Bloomberg World Index still has more work to do on the downside

Here's the  daily for the US market cap.  Still well off the highs

The monthly of the US market cap had an upside red Countdown 13 that has a decent record of turbulence ahead.  Nearly hit the upside wave 5 price objective too

The daily of XBT is a pretty good DeMark lesson.  Setup 9's can be shorter term inflection points and most of the time cause a stall of the current trend.  The red Countdowns are more powerful and signify important trend exhaustion.   The current situation here shows an upside red Countdown on day 4 of 13 however there is a downside green Setup on day 6 of 9 and if this completes to 9 then the upside Countdown is null and it goes away.  Watch the green TDST dotted lines as those are created at the true low of the start of the counter trend (green 1's).  These work as support as it did near 6000.  7752 is the next TDST to watch

XLF ETF is holding the 50 day and also has the mixed DeMark picture.  

SMH ETF hit another upside Trend Factor and stalled.  

Bond bullish sentiment is at 30% and is quietly moving up.  

US 10 Year Futures is starting to interest me on the long side.  

The daily of the US 2/10 spread continues to flatten.  Note the weekly and monthly have seen downside exhaustion signals and those same signals were seen ahead of steepening - and recessions

Another one of the 10 Year Futures show the new upside green Setup count.  

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