The financial ETF has bounced off its 52-week low set earlier this month and is now hovering around its 50-day simple moving average. It is down about 16% over the past three months. [Financial ETF Rises on Eurozone, Earnings Hopes]
“Many franchise names still trade at meaningful discounts to book value,” wrote Colas, the strategist. “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. And if that confidence wanes in the coming weeks, markets may find themselves in the familiar position of yet another Near Death Experience.”
Financial Select Sector SPDR
