Thursday, July 17, 2008

XLF volume record

Big day for the XLF with a record 527M shares. Of technical note is the fact that the Fs failed to get above the opening follow through highs, although it made 2 pretty good charges in the afternoon session on dwindling activity after the early morning volume surge.
As noted in previous posts, the XLF also has pivot envy and today's action was a fine example.
The NYAD was almost a perfect mirror of XLF price action except for the closing hour, but with so much XLF volume that should come as no surprise.
Both the Qs and the IWM are looking a bit toppy after a couple of good days and the lack of convincing follow through in the XLF may also be a harbinger of a Friday fade down. MSFT, MER and C earnings will be momentum drivers for the near term, and as evidenced by INTC's delayed takeoff after earnings, initial market response may not be the most profitable path to follow.

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