Today's Action was Important...

In my not so humble opinion, in financial markets some days are more important than others.  This is due to the supply and demand dynamics that are occurring at the time.  Most of the time a typical days action is irrelevant and unimportant, for example if a particular stock or market has been range bound for a few months and makes a small move one way or the other. That was not the case today.

One of the reasons why today's action was important was because the financial sector broke the uptrend that began in early June, and it also broke important support around the $25 level.  This level was resistance in March and throughout July and has been support since early this month.  This is obviously a bearish dynamic for the broader markets, and if tomorrows close in below $25 I am going to go short the XLFs with my stop-out at $25.