anyone taking this pic.twitter.com/7dmE8bYN67
— Arun S. Chopra CFA CMT? (@FusionptCapital) September 8, 2022
Today’s Chart of the Day was shared by Arun Chopra (@FusionptCapital). It’s a daily candlestick chart of the Financial Sector ($XLF) year-to-date. The five largest stocks within the Financial Sector, include Berkshire Hathaway, JP Morgan, Bank of America, Wells Fargo, and S&P Global. Arun points out that Financials are attempting to form a Head & Shoulders bottom, with neckline resistance around $36. It still needs to break above the neckline before the pattern is confirmed, but this is an encouraging development for the bulls given how vital this sector is to the broader market. On a relative basis, it broke out to a three-month high and reclaimed its 200-day moving average today, so it’s starting to show some decent relative strength. Are Financials carving out a bottoming here?