The S&P 500 financial sector has been on a big run for more than a year now, and it is now finally back to its prior bull market highs that were reached back in April 2010 and February 2011. This obviously leaves the financial sector at a key inflection point, with big resistance in its way.
The sector just happens to be touching up against this big resistance as the major financial firms are reporting their quarterly earnings this week. If the sector can take out this resistance over the next week or so, we're likely at the beginning of the next stage of the rally for the financial sector. If it can't take out this resistance, we're looking at a pretty significant triple top.