Financials at a pretty important level here with most of the banks reporting Q2 earnings over the next week pic.twitter.com/A4z8H9FvaG
— Austin Harrison, CFA, CMT (@meanstoatrend) July 14, 2022
Today’s Chart of the Day was shared by Austin Harrison (@menastoatrend). It’s a weekly chart of the Financial Sector over the past 18 years. Banks kicked off earnings season today, and price has not responded well so far. The sector closed at fresh 52-week lows on both an absolute and relative basis today. Austin points out that it’s testing a crucial level around $500 ($30 in XLF). This level was a major inflection point in 2007, 2018, and 2020. It also coincides with the 200-week moving average. Watch how Financials behave at this key level as the market digests the slew of upcoming earnings data over the next week. WIll former resistance act as support? Or, was 2021 just one big failed breakout?