Financials have been down and out recently but the last two days they showed some resiliency in the face of broader selling.
The Bank Index looks set to turn higher.
Widening out the picture, since 2016, the rising rates shown on the $TNX chart have created sudden moves on the $DJUSBK index.
I posted an article in Don't Ignore This Chart Friday afternoon with this price chart of the TLT. If the TLT price is going to break down, sending yields higher, perhaps we can expect another surge in the US financial stocks.
I recorded the first instalment of the new StockCharts TV live show The Final Bar with Greg Schnell. You can follow the link to check out a 30 minute show that outlines how set up everything is for reversal right now.
Greg Schnell, CMT, MFTA