US Financial Sector Update

Dow Jones closed at 12479, down 145 points. Not a good sign for the Bulls. For the week, Dow dropped by 507 points. It looks to have formed a double top and is now below its 50 day moving average of 12642.

The weakening of the index is mainly due to high oil prices which is causing inflation worries all over the world. It is also likely that the FED will stop its rate cut measures giving investors less excuse to buy into the market.

The phase chart of the iShares Dow Jones US Financial Sector fund (Symbol: IYF) is back into “Bearish” phase. It stayed in “Recover” mode for 18 trading days but could not gather enough momentum to move to “Accumulation” phase.



Let’s hope the March lows can hold water. If not it will be bad times ahead for the Bulls again.