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March 31, 2006
Finance Weighs on the Big Boys
Weakness in the Finance sector is weighing on the broader market. The Finance SPDR (XLF) led the broad market higher from mid January to mid February and then formed a gravestone doji and gap down in mid March. XLF continued lower and formed a falling flag over the last few weeks. Finance is the biggest sector in the S&P 500 and the price weighted Dow also features a number of high priced Finance stocks. As long as the falling flag holds (33), weakness in this key group will weigh on the S&P 500 and Dow.
Posted by Arthur B. Hill at March 31, 2006 05:18 AM