The financial sector has been unimpressive to say the least.
XLF, the SPDR Financials Sector Fund is already selling off and looking similar to the breakdown we saw in March.
The potential for a banking crisis being wider spread was real back then but I don’t think we are facing the same concerns currently.
That said, the chart looks awful and many names are at key levels.
BRK.B had been in cruise control all year, largely staying above the 50-day SMA and continuing higher.
That all changed in September and now it is headed towards it’s 150-day SMA at 335. I think it gets there and possibly lower. AAPL will play a big role as will BAC.
JPM needs to get back above 143.50 after a nice bounce Wednesday off of the 150-day simple moving average SMA. Support below comes in at 138.18 and 133.19 while the upside target is a clean $150.
JPM continues to be the name I like the most in the sector I might like the least.
BAC bumped up against it’s 20-day SMA last week and has sold off hard since. It hasn’t reached this low of a level since November 2020 as it closed below $26.
BAC is a falling knife at the moment.
WFC is also in a severe downtrend but it did find the volume shelf at 38.50 and could find footing at this level. This level is worth watching, targeting a move up to 43 even with support below at 37.50.
Blackstone, BX, is on a nice uptrend and worth considering at these levels.
BX bounced nicely Wednesday and closed above $104. It touched this trendline in August and followed up with a run to a recent high of 116.78.
If it gets the bounce, I like the odds for a move higher but $114 to $115 will be tough resistance. Take profits accordingly.
Staying away from the popular retail trader names like UPST, SQ, and PYPL as each respective chart looks terrible in their own ways.
AXP is a much different looking chart than V and MA. AXP is much worse.
Both V and MA are flirting with their 150-day SMAs but each have been trending higher and for the most part remaining above this moving average.
AXP has sold off over the past two months and is sitting at a key support level of 146. I am not optimistic for this one.
I need to mention SOFI, which held it’s 150-day SMA and closed at 7.47. If this level doesn’t hold, I do think 6.90 is in play quickly.
Bulls are targeting a move back to 8.00 but even if it gets there I don’t think it holds up so I would be taking profits.
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This service is for general informational and educational purposes only and is not intended to constitute legal, tax, accounting or investment advice. These are my opinions and observations only. I am not a financial advisor.
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