Financials getting rejected at a logical level of overhead supply. Momentum never hit overbought to confirm the slightly higher high $XLF pic.twitter.com/nssbwA2Qq1
— Steven Strazza (@sstrazza) December 6, 2022
Today’s Chart of the Day was shared by Steve Strazza (@sstrazza). It’s a chart of the Financial Sector ($XLF) over the past two and a half years. Financials are under pressure this week after being rejected at a key level, around $35. This level acted as support several times in 2021, but it’s been resistance for the majority of 2022. Steve also points out that RSI never reached overbought conditions (above 70) and it’s diverging negatively. Financials have been a leader recently, however seeing them fail to hold their August highs raises some concern over the validity of the recent leg higher in the broader market.