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No just a little blip. Banks mid week looked a little soft and some investors may have been exiting with a level of fear of what may lie ahead. But it would seem there is nothing to worry about at the moment.
But let’s look at some charts:
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So the first one above is the finance sector index – daily. It shows a dip – a minor pullback under way. But at this point it looks like the sector should recover and move to a first wave five and even a second and even a third. There is still life left in the sector.
In fact the weekly shows that for another year or so:
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After that:
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Well that’s a while away – and what we see is no trend. Again as with most indices the XFJ is well off its 2007 high.
This is the picture for the big four:
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So they are all looking good. We could fine tune between them but this is not so important when they are all in synch!
Materials also are looking good:
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So with both these power sectors tracking higher so too should the overall market.
But don’t turn your back. There will be ‘off ‘days as large institutions may want to lighten reweight between sectors and this will cause softness.
Enjoy the ride
Tom Scollon |