Not a Pretty Picture for Financials
11/24/2010 10:02 am EST
Stocks were hit hard on Tuesday, but since September, it has been the failure of the financial stocks to participate in the rally that is more concerning. The Financial Select Spyder (XLF) appears to have staged a fake breakout just after the election as it has dropped back below the breakout level and is close to key support. The regional banks, as represented by the SPDR KBW Bank ETF (KBE), has been weaker than the S&P 500 as the relative strength (RS) line has been in a downtrend since July. KBE has also just broken support on the daily chart with key support at the August lows (21.19).
Tom Aspray, professional trader and analyst, serves as video content editor for MoneyShow.com. The views expressed here are his own.