Financial Sector Breaks Downtrend

The S&P 500 made a new bull market closing high today, but the action in the Financial sector was probably even more important.  The S&P 500 Financial sector has been underperforming the overall market lately, and it is a main reason why the major indices haven't been able to break out of their trading ranges.  Today, however, the Financial sector broke above its short-term downtrend line, which is a very positive technical formation.  If the Financials start moving higher again, the market should have no trouble making another leg higher.

Comments

[Hepimiz Ermeniyiz]

oh yippee! happy days are here again then, right ?

[Terry B]

Do ya want to make money in this market? Sometimes you have to suspend logic and just jump into the foul waters of Wall St. Yes, there is a disconnect between the market and the situation on Main St., but pick the leaders, hold your nose, and hang on tight!

[JeffDiercks]

The Financial Select Sector SPDR (XLF) look sick here with RSI unable to hold above the low 50s and price unable to get above the 50 day MA. I certainly cannot foresee financials leading from what I see in the charts. Of course with this market...anything is always possible.