Financial exchange traded funds fell Tuesday with shares of Citigroup (NYSE: C) and American International Group (NYSE: AIG) down more than 1% as investors awaited a pricing of 300 million AIG shares after the bell.

Financial Select Sector SPDR Fund (NYSEArca: XLF) fell 0.6%. The sector ETF has dropped below its 200-day moving average, a negative sign from a technical standpoint.

Paul Weisbruch at Street One Financial in a note Tuesday said large buying in put spreads was observed in the financial ETF on Monday as it closed in on its 200-day average.

“These options investors are bracing for additional downside in XLF but not below $13 [a share],” Weisbruch said.

Financial Select Sector SPDR Fund

The opinions and forecasts expressed herein are solely those of John Spence, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.

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