Financials at a Critical Juncture

With Goldman Sachs leading then lower, the financials find themselves in a precarious situation this morning. I wrote several months ago that I thought the XLF was working through a weekly cup and handle bullish formation, despite all of the frustrating and choppy price action.

Nonetheless, looking at the daily chart here, if the XLF significantly loses the $15.78-$15.80 area, then the multi-month bearish descending triangle will be confirmed to the downside. In other words, the financial bulls have procrastinated long enough. If they are actually going to show up, then now would be the time.

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