Day Summary

Seems like 38% retracment level held atleast till move to 23%. What bothers me that there is no leadership appearing this time, financials and home builders imho can not provide leadership they are at their lows and energy/coal/steel/commodities are breaking down. Just a little bit leaderhship is appearing in biotech and healthcare and somewhat in trucking. One thing to note that even in January there was no leadership till we went ahead and tested those lows in march with New High New Low divergence so possibly we may drift now a little for few weeks and then retest these lows and then try to find a bottom and then may be new leadership emerges. For now I think XHB and XLF has just seen some short covering.