Financials flashing red while $SPX just chops sideways — classic divergence setup that should have bears paying attention.
$XLF has been getting absolutely wrecked lately while the S&P500 grinds around doing nothing. Banks and financials are supposed to lead the market, not lag it. When they break down first, the broader market usually follows.
This looks eerily similar to the Jan-Feb setup from earlier this year. Same divergence pattern. Same choppy price action on $SPX while financials died. Then everything caved.
The $QQQ chart from yesterday was solid, but this financial weakness adds another layer. When your leading sector can't hold up, it's tough to stay bullish on the index.
Watching to see if $SPX follows financials lower or if this divergence resolves differently. Right now, the setup favors downside if history repeats.
$XLF has been getting absolutely wrecked lately while the S&P500 grinds around doing nothing. Banks and financials are supposed to lead the market, not lag it. When they break down first, the broader market usually follows.
This looks eerily similar to the Jan-Feb setup from earlier this year. Same divergence pattern. Same choppy price action on $SPX while financials died. Then everything caved.
The $QQQ chart from yesterday was solid, but this financial weakness adds another layer. When your leading sector can't hold up, it's tough to stay bullish on the index.
Watching to see if $SPX follows financials lower or if this divergence resolves differently. Right now, the setup favors downside if history repeats.
