Financials Rebound

The S&P 500 Financial sector has broken solidly above its 50-day moving average over the past two trading days, and from a technical standpoint, the sector looks poised to re-test its 2009 highs in the coming weeks.  Yesterday we noted that the overall market can rally without the Financial sector leading the way, but the fact that the sector is now turning higher is a positive.

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Comments

[TC]

I disagree. That so much support already has been thrown the way of financials possessing zero prospect of maintaining capital leverage to pre-crisis levels finds just about everything possibly positive (of having been saved from collapse) fairly baked in more or less as much as can be, everywhere.

The market climbs a wall of worry and this (worry) is revealed via shares increasingly offered up for sale as prices rise. Yet have we seen this in any sector, financials or otherwise? Nyet. What does this speak of, then? One thing: complacency. And what does complacency make for? Most likely pigs ready for slaughter.