On a related note to my post last weekend about the Nasdaq’s long-term current position, here we have the financials at another one. Just as the Nasdaq led the bull from 1982-2000, financials were among the most pronounced leaders of the 2003-2007 cyclical bulls.
With this most recent runaway higher in the market, the financials are now back to a major level which was firm support last decade. Just below $20 or so on the XLF. Sure, we can overshoot further. But more often than not these levels do become a factor sooner than later.
Hat Tip to @HCPG who I saw put out this chart earlier.