That was an ugly close on Friday and it set up an early test for major indices, especially the NASDAQ Composite and NASDAQ 100.  Market breadth was a disaster on the NASDAQ, and the once invincible mega growth names are leading the way lower.

Technical View

The COMPQ and NDX were higher this morning but have turned lower and could open below key support points.  The key is closing above these levels, but it doesn’t look great at the moment.

Portfolio Approach

The are no sector weighting changes this morning to our Hotline Model Portfolio.

Today’s Session

The ten-year yield is breaking out on the one-year chart and going back to 1987.  This is pressuring tech stocks, which continue to stumble, as mega cap names have come under extreme pressure.

There are more hopeful comments out of Ukraine; although, the Kremlin continues to reiterate Russia will realize all its plans.  This is mostly for public consumption, as Russia needs an off ramp more than ever since they made this move.

Money coming out of bonds will have to find new homes, and I think most will go into equities.

It’s how we close that matters more than ever.