Markets never saw the light of day Tuesday as the benchmarks were underwater the entire session. The Nasdaq and S&P 500 surrendered .3%, but the Nasdaq did record a bullish hammer and for the last 4 days has CLOSED in the upper half of the daily range, a good sign. It was once again the Russell 2000 that was the weakest and that is a theme that continues. And lets remember they tend to lead on the way higher, and will also be the first to fall as they are more susceptible to any changes in the domestic economy as they are essentially a pure play on it. Many maintain an eagle eye on 10 year yields, interest rate and junk bonds, but perhaps other examples of potential problems are being shown up in commercial real estate. Looking at many charts I came upon VNO which is now on an 11 session losing streak, although the damage has been somewhat muted off just 8% from its most recent 52 week highs. Are there problems in commercial real estate? Perhaps they are a bit too exposed to retail, I am not sure of that, but eleven straight down days should be on anyones radar. It is interesting how we are seeing softness in the face of a nice private employment number recently, an upgrade on China from GS this week and CLF basically said the bottom was in with the commodity space this month. That could be a tell going forward. Maybe a morbid play would be fitting given many who have been deathly patient in waiting for a pullback and that can be provided by the chart below in SCI and it is exactly how we presented the idea in our Friday 3/10 Game Plan.
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