I think tomorrow will be important day for XLF. If it can bounce, it has to be tomorrow. Today, last day of June, mutual funds were still selling financials and buying the hot ag and coal companies. If financials have any chance to bounce, tomorrow it has to show it. Otherwise, I think my thought that it will bounce maybe wrong.
But I'll give it time to work out.
For example, today LEH was down 10%, since no funds wanted to show LEH as their holdings as the end of June. But tomorrow, they'll buy it back, since they have another three months before they report their holdings. Similarly, XLF and UYG should at least have a minimum bounce tomorrow. If it's sold again towards end, then I really question it has any strength left in it.
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