The following Monthly chart of the Financial Sector (XLF) shows that it has been on a strong rally since mid-2017. It's approaching major resistance around the 30.00-31.00 level (prior all-time high and double Fibonacci retracement levels).
- XLF can continue its push to spike through, and hold above, 31.00,
- GS and JPM continue to maintain their upward momentum,
- C, BAC and MS can strengthen their upward climb (all three have a long way to go to reach their prior all-time highs), and
- the XLF:SPX ratio can hold above 0.0103 and climb higher
* UPDATE January 21...
Continuing to watch XLF vs SPX...
Will the XLF:SPX ratio hold above its Friday closing price of 0.0105 (now near-term support, as shown on the daily chart below)? This is a new key level, along with its longer-term major support level of 0.0103, as noted above.
Keep an eye on the RSI, MACD and PMO technical indicators to see if they remain newly-bullish in support of a push higher for XLF.
|SPX & XLF Monthly Price Comparison chart|
|SPX & XLF Weekly Percentage Comparison chart|
(gains since Nov. 8, 2016 Presidential election)
|XLF:SPX Daily Ratio chart|