Financials Still Weak

12/16/2008 9:37 am EST

Focus: ETFS

Thomas Aspray

, Professional Trader & Analyst

chart

The financial sector has been leading the market lower all year. The daily chart of XLF shows a series of continuation patterns, or pauses in the downtrend, which were all resolved to the downside. Another pattern may be forming now, with key support at $10.40. A move above $14 is needed to improve the outlook.