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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