A Bullish Setup in Global Financials 🌤️ The Morning Print

Good morning! 

The Global Financials ETF (IXG) is carving out an inverse head-and-shoulders pattern just below all-time highs.

Here's the setup.

Financials have been a major laggard recently, with the sector ETF (XLF) down more than -5% year-to-date.

Global Financials, however, have shown much greater resilience being up just shy of +1%.

Despite the underperformance from the sector, the setup today looks pretty bullish.

IXG is running into the neckline of its inverse head-and-shoulders that has been developing since the start of the year.

At the same time, volatility has compressed to some of the lowest levels in recent years.

Global financials are setting up for a big move.

We think this pattern ultimately resolves higher.