Last week was horrible for financial stocks as the XLF tumbled 2.86%. Investment services ($DJUSSB) and asset managers ($DJUSAG) were at the bottom of the heap with losses of 6.00% and 3.94%, respectively. The losses were technically damaging for both industry groups as both now appear to be rolling over and staring at further potential losses ahead. The DJUSAG recently hit price resistance, could not break through and closed at four week lows. The approximate trading range for the group is 145-155. A close below 145 would likely signal a retest of February lows near 130. Take a look:
Happy trading!
Tom
About the author:
Tom Bowley is the Chief Market Strategist of EarningsBeats.com, a company providing a research and educational platform for both investment professionals and individual investors. Tom writes a comprehensive Daily Market Report (DMR), providing guidance to EB.com members every day that the stock market is open. Tom has contributed technical expertise here at StockCharts.com since 2006 and has a fundamental background in public accounting as well, blending a unique skill set to approach the U.S. stock market.
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