Although we exited our positions in XRT and PPH yesterday, both ETFs are still potential long candidates. In volatile markets it sometimes makes sense to take a trade off the table and re-enter if and when another setup presents itself. XRT could provide a partial position entry above the two day high ($52.50). On Wednesday, XRT pulled back on lighter volume and undercut the 20-day EMA. Yesterday it formed a reversal candle on higher volume, suggesting it was being accumulated. We may consider building a position in this ETF by taking small size above the two day high. However, we prefer to make the call intraday due to the recent volatility in the market. Ideally, XRT needs to consolidate for a week or two more in order to build a sufficient base from which to launch a potential rally. PPH also performed well on Thursday but requires more sideways action in order for a quality setup to develop. What we would like to see in PPH is the formation of a higher low followed by additional consolidation prior to a possible move higher.