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Thursday, October 27, 2011

Will Financials lead or bust this rally?

An important sector that I'll be following over the next days/weeks is the Financials sector, XLF...as I write this, it is leading today's pullback as can be seen on the 1-day 1-minute percentage comparison chart below of the Dow 30, S&P 500, Nasdaq 100, Russell 2000 & XLF.

Future price action in this sector may provide valuable insight into overall market reactions to the Eurozone debt deal.


The Daily chart below finds price in between Fibonacci fan line support and trendline resistance...a break and hold on either side could establish market direction in the days/weeks to come.