Don't Ignore This Chart!

Insurance SPDR Leads Finance Related ETFs

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Stocks in the finance sector have been strong the last four days with the Insurance SPDR (KIE) showing chart leadership. Note that the Finance SPDR (XLF), Broker-Dealer iShares (IAI) and Regional Bank SPDR (KRE) are all up over the past week, but KIE is the only one trading at a new 52-week high already. This means the KIE chart is the strongest of the group. On the chart below, KIE stalled at resistance in mid August and broke clear with a big move the last three days. The broken resistance zone around 72.5-73 turns into the first support zone to watch on a throwback. The indicator window shows the KIE:SPY ratio breaking out last week as KIE starts to outperform SPY. 

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--Arthur Hill CMT

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Announcement from the Author

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Arthur Hill
About the author: , CMT, is a Senior Technical Analyst at StockCharts.com. Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London. Learn More
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