“I just looked at the charts of some of the major banks such as JPMorgan Chase & Co. (NYSE:JPM), Bank of America Corporation (NYSE:BAC), and Citigroup, Inc. (NYSE:C) along with the Financial Select Sector SPDR (NYSE:XLF) and the picture is not looking too pretty in terms of the volume picture. Very notable is the downside volume today on the (NYSE:XLF) Financial Select Sector SPDR.  Today we saw the heaviest downside volume since May 20, 2010.  The (NYSE:XLF) failed to break out north from the current long swing trading range and instead made a double top and broke down on huge volume today from the highs,” Thomas Carreno Reports From Best Online Trades.

He goes on to say, “I had not noticed the huge downside volume until now.  When I first saw it I thought it was a misprint.  This could be a beginning of a new heavy volume down trend or just a fluke one day event. The (NYSE:XLF) really needs to break below 14.20 to confirm a possible new down trend and is also probably what needs to happen before any beginning affects can be seen in broad market.”

ETF Daily News Notes Some Other Related Financial ETFs: ProShares Short Financials (NYSE:SEF), ProShares Ultra Financials (NYSE:UYG), ProShares UltraShort Financials (NYSE:SKF), Direxion Daily Financial Bull 3X Shares (NYSE:FAS), Direxion Daily Financial Bear 3X Shares (NYSE:FAZ).

 
“It is never good to see extremely heavy volume downside price action right from the highs of any stock or index.  How the (NYSE:XLF) chart starts to look into next week could be quite revealing in terms of possible hints at future market direction.  A low volume reaction up in the (NYSE:XLF) may set up an ideal short opportunity in this ETF,” Carreno writes.

Take a look at our categories on each ETF for more in-depth articles below:

NYSE:FAS, NYSE:FAZ, SEF, SKF, UYG, XLF