Analysts are looking for relative improvement in the financial sector for signs the recent rally marks a bottom in stocks. [Stock ETFs Try to Break Trading Range]
“A further move higher in the financials will validate a continued rally, as confidence in the global financial system is an important key to economic growth,” one strategist noted. “And if that confidence wanes in the coming weeks, markets may find themselves in the familiar position of yet another Near Death Experience.” [Financial ETFs]
The bank ETF was down 26.2% year to date as of Oct. 14, compared with a 1.1% loss for the S&P 500, according to investment researcher Morningstar.
SPDR KBW Bank ETF
