More pressing is recent price action in financial services stocks and ETFs, which highlights the group’s vulnerability to a flattening yield curve. One point of attraction for XLF and rival financial services ETFs has been the discounted valuations of big bank stocks.

“This type of price action is concerning to say the least.  A banking sector peak have implications for the global economy, etc…,” adds See It Market. “My biggest fear is that we just finished classic A-B-C corrective waves on both XLF and BKX and we’re going to take on the 2009 lows in the banking index.”

Financial Select Sector SPDR