FINANCIALS: 4 STRIKES AND YOU ARE OUT
During last weekend's chart review, I discussed the negative attributes that were plaguing financials. It was painfully obvious by looking at the price action during that week that the financial sector was leaking beneath the surface without a majority of investors realizing it. I detailed the fact that there were three strikes against financials that were an obvious sign of weakness.
This past week that leak was actually recognized. Recognition of that leak led to a powerful Friday selloff. The financials are now potentially facing strike four as detailed in the chart below.
The greatest worry for the bulls, at this stage, should be determining how the market will stay on its feet with an obviously broken semiconductor sector (SOX) and an almost broken financial sector. Two walls that the bulls surely don't want to see crumble.
click chart to enlarge
BKX
