The Fallen Leader

Until recently, financial sector has been one of the leading sectors that help drove the market to the October high. Now, the financial is no longer one of the main catalysts that are pushing the market to its recent high. Take a look at the financial ETF, XLF, and the top four holdings in the XLF; JPM, BAC, WFC and GS, and you can see the head & shoulder price pattern are being form on JPM and WFC, and lower high/lower low trend is being form on BAC and GS. These bearish price patterns can eventually lead the market down. As one sector fall, others will follow. Be very cautious on the financial.

Here are the charts:


XLF:



JPM:



BAC:



WFC:



GS: