- ·Financials: Following last night's successful House vote on financial reform, the sector underperforms following disappointing Jobless Claims, ISM and Pending Home Sales data. Banks (especially the large caps) are weak in early trading.
- Volumes are heavy on the sell-off and increased dramatically following the 10am economic reports. Likewise, flows remain very active. The 10am number brought out real money sellers and led fast money to press shorts aggressively. Once we held the 1006 technical level, shorts to come in and cover.
- Haven't seen a ton of real money buying on this pullback. We're seeing some institutional support within life insurers and defensively positioned banks, but nowhere else.
- Sentiment remains extremely negative heading into the Senate's vote and tomorrow's June Employement report. As estimates continue to come down for Q2 earnings, it is unclear what positive catalyst (other than valuation arguments) is going to lift the group between now and Q2 report.