US Financial Sector

The current weak market is caused by US sub-prime problem. If you look at the financial sector in US, you can see the cracks appearing back in Aug 2007.


If you look at the iShares US Dow Jones Financial Sector Fund (Symbol IYF), the ETF went into "Bearish" mode on 2 Aug 2007.


It then tried to stage a comeback which coincides with FED cutting interest rate. It never went back to "Bullish" phase and was quickly back to "Bearish" phase. So we are already about 7 months into the financial sector downturn.


The ETF is now at "Recovery" phase and hopefully it can move to "Accumulation" phase.


This fund is invested in top financial names in US. Companies like JP Morgan, Citibank, Bank Of America are companies held by the ETF.