Market Overview

A Look At Some Market Indicators (XRT, XLF, VXX, TLT, UUP)


When you look at the performance of broad U.S. equity indices during the middle of Thursday's trading session, things don't look that bad. At around 1:10 EST, the Dow Jones Industrial Average has fallen around 75 points to 10,223. The S&P and Nasdaq are both down around 1%.

A look at some specific sectors as well as a number of other indicators, suggests that more selling could be on the way. Look at the 10-year U.S. Treasury bond yield. It has fallen close to the 3% level, indicating that jittery investors are piling into the perceived safety of U.S. debt. The iShares Lehman 20+ Year Treasury Bond ETF (NYSE: TLT) is trading very close to its 52 week high of $100.31 at $98.70.

The Chicago Board Options Exchange Volatility Index (VIX), which is a measure of market fear, has surged 8.21% to over 29. The iPath S&P 500 VIX Short Term ETF (NYSE: VXX) has popped 3.26% today.

Both the retail and financial sectors are getting punished as fears over the state of the consumer continue to intensify. The SPDR S&P Retail ETF (NYSE: XRT) has lost 1.60% to $37.48.

The Financial Select Sector SPDR (NYSE: XLF), which tracks the performance of a basket of financial stocks, has fallen 1.31% to $14.32. Both volume in the shares as well as the options has been heavy.

Another interesting trend that is taking place today is that the U.S. dollar is falling along with stocks and crude oil, reversing a long standing pattern. Not even a stronger Euro has been able to lend a bid to U.S. stocks today. This could be suggesting that the near term direction for equities is going to continue to be down. The tape is indicating that investors should be reducing risk and hedging their long stock positions right now, as another leg down is starting to look more and more likely.

Posted-In: Sector ETFs Short Ideas Specialty ETFs Intraday Update Movers Trading Ideas ETFs


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