Banks, Homebuilders: Update on Two Sectors

Includes: KBE, XHB, XLF
by: Brett Steenbarger

Here's a quick look at two sectors that I had earlier featured when they failed to confirm the June highs in the large cap stock indexes. Banks ($BKX, top chart) and homebuilder shares (XHB, bottom chart) are now retracing much of their rallies from March. As I stressed in the earlier post, it is difficult to imagine sustaining economic strength without the participation of these sectors.