Another Distribution Day
The market tried to rally back, but faded again late in the day. Volume levels rose, making for another distribution day.
Breadth was also pretty negative, both the A/D line and the Hi/Lo indexes.
Oil, gas, gold, etc. all finished lower on the day. Bond yields also reversed on the day, with the 10-year finishing at 4.80%.
Financials were the weakest group, with the BKX -1.0% and the brokers -1.2%. The brokers report next week. And while estimates for the current quarter have been trimmed, I think sentiment is too negative. I will be looking to add exposure to the group after the earnings reports.
I am also looking for this pullback to run its course, and to add some beta to the portfolios.