The markets ended their win streak on Tuesday following the holiday break on Monday. Led by the Financials (NYSE: XLF) which were still suffering from the Brexit woes, the markets started with a sell off. The S&P 500 (NYSE; SPY) gave back about 0.75% Tuesday with rather average volume. Even with this small pullback the SPY is still up over 4% since the start of the rally last week.
The Nasdaq 100 (NASDAQ: QQQ) outperformed a little by only losing 0.61% on Tuesday and having slightly lower than average volume. This popular Nasdaq ETF can also claim top spot for performance over the last week, up over 5% since the Brexit lows.
Getting back to the financials, the XLF lost 1.5% Tuesday which held back the overall markets all day long. The popular banking sector was held back by the group of stocks that represent the UK. Names like Lloyds Banking Group (NYSE: LYG), which lost another 7.75% on Tuesday, and the Royal Bank of Scotland (NYSE: RBS), down 7.38% Tuesday and 38% for the last 30 days, helped push the other banking names lower on the week. Even as the Brexit news moves away from the headlines temporarily, the volatility in the Financials isn't over yet. With earnings season a week away, expect to see more activity in the XLF.
Energy has been another driver of recent market weakness, with Oil as a focal point. The US Oil fund (NYSE: USO) lost over 5% on Tuesday as oil prices slid towards recent lows. The recent uptrend continues to be challenged in the short term, and for now it seems that traders are taking profits off the table. This slide in oil prices hit other ETF's as well. The Oil and gas explorers (NYSE: XOP) fell over 3% Tuesday on oil's weakness as well.
Lastly, the metals and mining space continues to make headlines as well. The recent strength continued Tuesday as sectors like Silver (NYSE: SLV) added another 1.2%, poking up to highs. Silver has just been on a tear this year boasting a 43% gain for 2016. In the mining space the Gold miners also hit new 2016 highs, popping 2.03% thanks to the strength in gold. The gold mining sector hasn't pulled back all year long, leading to a performance number for 2016 that tops 3 digits (116%).