Financials Not Leading

12/03/2009 9:56 am EST


Thomas Aspray

, Professional Trader & Analyst

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The financial sector ETF (XLF) and its banking sector counterpart (KBE) both peaked in October. The break in the RS trend line confirmed that KBE was no longer outperforming the S&P 500. A normal correction would take KBE to the 38%-50% retracement support in the $17-$18.70 area. These sectors may lead the market lower and should be closely monitored.

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