Market Rebound

Recently, the US market internals have improved dramatically (VIX is falling, with a positive term structure), and a rebound has taken place. As the SPX approaches the 2710 gap area from March 19th, some pause could take place.

 

The defense sector is holding strong and likely to move higher with Trump's comments supporting "Buy American" initiative to allow more countries to buy more and bigger weapons from the U.S., according to Reuters. 

Look at DFEN - a triple leveraged Defense sector ETF. The stock is running up against its upper Bollinger Band and looks go higher if it can go above the recent down trending line on the chart. 

Ratheyon (RTN) has held up amazingly in the market sell off. It has now broken out to new highs. This supports the DFEN break out above, as RTN runs up its Bollinger Band.