Stock Rally Fades, Financial ETFs Swing Negative | ETF Trends

A nearly 200-point Dow rally faded Monday as exchange traded funds indexed to the U.S. bank sector fell to new 52-week lows.

The Dow saw nearly all its morning gains evaporate while SPDR KBW Bank ETF (NYSEArca: KBE) shed 0.5%. Key holding Bank of America (NYSE: BAC) lost over 6%.

U.S. stocks were volatile Monday following a four-week losing streak.

After a steep pullback, stocks are “bouncing along the bottom” and set to rally, Mark Mobius, executive chairman of Templeton Asset Management’s emerging markets group, told Bloomberg.

The iPath S&P 500 VIX Short Term Futures ETN (NYSEArca: VXX) reversed early losses and gained over 3% at last check. The exchange traded note tracks futures based on the CBOE Volatility Index, Wall Street’s so-called fear gauge. [Sector ETF Correlations at Two-Year High: Strategist]