Market Breaks but not Bearish

May 27, 2015
By Vlad Karpel

Definitely some broad based selling pressure in all the major indexes. Most of the index ETFs that we follow was down roughly 1 percent. The Consumer Discretionary ($XLY -.71 percent) and the Utilities ($XLU -.63 percent) were really the only sectors that were not down a percentage.

The Regional Bank ($KRE) held up relatively well with a .64 percent decline, which is not a total surprise since buys will look to add these stocks on pullback in anticipation of future rate hikes.

Speaking of rates, Bonds ($TLT) have been firming since last week and on Tuesday surged above short-term resistance, $122, reversing its short-term downtrend.

A sector that has not been able to break any resistance has been Energy stocks. They were hit hard as Oil ($USO) fell and the Dollar ($UUP) rose. Commodity-related stocks were hit the hardest. Metals & Mining ($XME) fell over 2 percent and the Gold Miners ($GDX) declined 2.95 percent.

With Gold ($GLD) breaking $115, we could see a challenge of the May lows, $112.50.

Joe Cusick from TradingBlock and Jeff Kilburg from KKM Financial are doing a webinar at Noon today on the State of Volatility, check it out.

Have a great trading day!

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