There is a lot of weakness in the financial sector right now.
I mean tons of it!
The overall market looks great, and it is quite surprising this market is still managing to climb higher with out the financials being on board.
The earnings season hasn’t been kind to them at all, with each report resulting in a hard sell-off.
I had Bank of America (BAC) up until last Thursday, but I sold before the first batch of earnings came out. And boy, am I glad. I took a +4% profit that would have been wiped out had I held on instead.
But check it out, these bank stocks are really struggling, and it isn’t limited to just the mega-banks. The Regional ones are showing the same pattern as well. They all have this head and shoulders pattern that looks to be or has already confirmed a break of the neckline.
Bank of America (BAC)
Goldman Sachs (GS)
JPMorgan Chase (JPM)
Regions Financial (RF)