Remember in June when the SPX was making highs and Financial's weren't. This was foreshadowing the decline to the May lows. Well here we are again, SPX making new highs even getting above its 200EMA, while XLF and other financial indexes are failing to make new highs and get above their 200EMA's
Here is XLF notice how it has not made a new high even after Goldman's and JPM great earnings that meant the world was saved.
Here is RIFIN- FAZ and FAS index, no new high.
Now here is SPX making new highs and above its 200EMA.
Much of this move started when the Financials had great earnings. Since then the move in this sector has slowed. Much of the S&P has been lifted by Energy and other companies beating earnings(these earnings were set so low, anyone could be them).
So keep an eye on the financials, if they can rally the market may move up more. But chances are they could be showing signs of weakness, since they weren't able to rally to new highs on
great earnings great trading earnings, or rally to new highs with the market. Also remember what else foreshadowed the move to the May lows, Oil and energy falling first. Based on my post last night this could be happening.
