We Can't Lose Financials

Financials checked an annoying box....the Failed Breakout box. 

Price pushed above resistance.

Got everyone leaning the right way.

Then slipped back into the range.

That part? Annoying but normal. 

They shake out weak hands. They reset momentum. They test conviction.

What they are not allowed to do is turn into breakdowns.

And this is not a want. It’s a need.

Financials are too important to roll over quietly. 

They are economic beta. They are credit. They are liquidity. 

When they break down, it tends to bleed into everything else.

XLF is flirting with it's 200 day moving average and momentum is clearly struggling with RSI failing to hold above 50. 

Hesitation is fine.

Structural damage is not.

If price slices through the lower end of this range the tone changes. 

Not emotionally. Structurally.

Right now, this is just annoying.

If it becomes a breakdown, it becomes something we have to respect, and all the other areas holding up become vulnerable. 

Anyway, that’s my two cents.