Today’s One Chart is the Financial Sector SPDR ETF, in a follow-up to our post in early June on the confluence of resistance levels. As we’ll discuss in this article, the XLF is displaying a similar combination of factors, all suggesting weaker prices and likely underperformance as the sector continues to struggle.
Our observation in June, as the S&P 500 was reaching its own short-term peak, was that the Financial sector had retraced 61.8% of its February to March downtrend. This was after the XLF had previously found resistance at the 38.2% level in April.
You can read more over at seeitmarket.com.
RR#6,
Dave
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