Slightly weaker day for indexes as IWM returned back under Q2P. But leader QQQ continues to power up. Very interesting backtest of SPY YR1 happening here - things will look more threatening if that breaks.

Recent shorts that I covered on IWM and XLF could be taken again. Tough call here. I have been skeptical of the recent bounce but acknowledge the trend. The problem with reducing exposure here is that XIV is not confirming and VIX while up is rather debatable as a reversal bar. Hopefully I don't regret this, but think I will hold off one more day.

In other news TLT cleared Q2R1 for the second time, and all of a sudden AGG - key benchmark bond ETF - is above all pivots and its D200MA. I don't think that was in the Wall Street script for 2017.

SPY, IWM and AGG below.