Relief rally may be fading.

March break is over and it is back to work!

After a seven day relief rally that brought indices within striking distances of their highs, many saw downside reversals today. We continue to prune lagging positions.

The rally has been on weak volume and many internal indicators have not been able to reverse the damage of the past few weeks. While some leaders have been able to make new highs, there has been rotation and a significant percentage of previously leading companies have lagged,  pointing to a tired market.

Breadth models for North American markets continue to point to near term consolidation / correction.

Yield oriented positions remain strong on continued narrowing spreads.