With that said, the potential exists for a retracement of the entirety of the 2017 gains for financials. And it comes at really what is the perfect time: Everyone believes that macro tailwinds are incontrovertible for the space. The only thing incontrovertible is that markets punish consensus opinion backed by overwhelming asset allocation, creating doubt where there was once conviction. These cycles occur regardless of the fundamental backdrop and very often end up influencing the fundamental backdrop greatly. That's a subject for another article, however.
The chart below paints the picture. Financials are starting to wobble at the worst point possible, against two trajectory points of tremendous relevance that only increase the probability of this being a substantial turning point for the markets as a whole.
(click chart to enlarge)
