Though all the major indices closed down for the day, I still think today was bullish. Consolidation is but natural, and in fact, should be welcome if you are bullish after the run up we have had. And as I pointed out in the intraday post, the major support levels were well defended by the bulls. As I had posted the index charts in the earlier post, and the markets didn't change much since, I won't post these charts again. Here is the link to the earlier post.
Let's focus on something else. Financials. As I have been saying for the past two days, I am of the opinions the markets will have a hard time continuing with its run up as long as the financials continue to lag. They continue to drag the markets down and today was no different. The financials ETF chart - XLF - doesn't look bullish by any stretch and MA(200) continues to be a tough nut to crack. For the market to move substantially higher from here, financials will have to move out of the multi-month trading range shown below.
Personally speaking, I got out of VXX at 17 for 3.15% gain. I got into GSM at 13.35 and LVS at 32.69. The latter was impressive today but I got in only after the breakout. This wasn't on my watchlist but I was alerted about the breakout by @TheArmoTrader on Twitter. I liked what I saw - the breakout was on good volume and the pulllback on low volume - so, I decided to step in. My strategy here is to look for quick profits and not get too greedy, at least not until the financials start performing.
I will be back later with Chart of the Day.
Take care and good luck!