After trying unsuccessfully to break above its 200-Day Moving Average (DMA) several times last week, the S&P 500 Financial sector has been showing considerable weakness in recent days. Today alone, the sector is down over 3% for its largest decline so far this month. With these declines, the sector is now sitting right on its 50-DMA, which is a level that should provide at least some short-term support. As noted in our prior post, the S&P 500's decline remains within the normal range of pullbacks we have had since the March lows. If investors are looking for a catalyst for the market to rally from here, the current setup for Financials could provide the needed spark.
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