The financial sector is “a perennial underperformer,” said Tarquin Coe, technical analyst at Investors Intelligence. “The ratio against the S&P 500 has been moving south since late 2009. Longer-term they have been weak for the past decade.”
The analyst noted the financial ETF has encountered resistance at its 30-day exponential moving average.
“This level has effectively contained the downtrend since April. Similar tests in August were followed by sharp downtrend reassertions,” he said in a newsletter Friday.
In U.S. large-cap stocks, the S&P 500 was testing its 50-day exponential moving average on Friday.
