We have been looking at the idea of the financials correcting through time in lieu of a steep price pullback. For nearly a full month, the financials and large banks like Goldman Sachs have essentially gone sideways after their prior impressive rallies. While yesterday’s reversal lower was spooky and sudden, there was not only no downside follow-through today to confirm any sort of breakdown, but instead there is a reversal back higher. The financials are one of the leading sectors today, and I am stalking some of the better acting names. To be fair, the bulls also need to prove themselves with a confirmed upside breakout. Otherwise, more sideways action may be in store.
Nevertheless, it’s taken a whole lot of precious time and money for these financial charts to do it right.