I'll post the market close a little later. I'm not surprised by the move today. There appears to be a conflating of two things that caused the reversal.
- Thing 1: So many of the interest rate sensitive stocks had already anticipated the rate cut.
- Thing 2: The downgrade of FGIC today by Fitch caused a tremor to go through the financials.
" Bear in mind that an item of news usually causes but ONE considerable movement of prices. If the movement takes place before the news comes out, as a result of rumors and expectations, then it is not likely to be repeated after the announcement is made; but if the movement of prices has not preceded, then the news contributes to the general strength or weakness of the situation and a movement of prices may follow. " (p. 28).I think that we can say that we had a considerable movement in prices before this news, and a considerable movement of the number 2 variety afterwards. I love this little book.
Here are a couple of intraday charts on the XLB and the XLF: