“Given the souring tone, it’s not surprising that we have started to get downward revisions to economic growth expectations for the quarter that ended in March,” Think 20/20 said.
From a technical standpoint, Financial Select Sector SPDR Fund has failed two attempts since the beginning of 2010 to make a sustained push over $17 a share.
The financial sector “is not participating in the recent rally,” said Peak Theories in a recent note.
“The question from here, then, seems to be one of whether the Financial Select Sector SPDR Fund (XLF) will rise up to meet the S&P 500, helping its rise in part due to the heavy financial composition of the S&P, or whether the S&P might decline to meet the XLF,” Peak Theories asked at the time. “The other possibility, of course, is that the two could trade separately with the S&P outperforming this time, but the S&P seems unlikely to move too high without the participation of the financials.”
Financial Select Sector SPDR Fund