Breadth For Financials Improving As Goldman Approaches New Highs

Includes: GS, IYF, XLF
by: Bespoke Investment Group

Even though the S&P 500 Financials sector remains well below its 52-week high, the breadth of the sector is looking good. Currently, 82% of the stocks in the sector are above their 50-day moving average. This is above levels reached during the Spring and about inline with levels of the fourth quarter of 2006 -- a time when the sector was regularly making new highs.

It's also amazing to see that Goldman Sachs (NYSE:GS) is just $5 away from record highs again. Since its low on August 15th, the stock is up 37.87%. Many have come to believe that Goldman has replaced General Electric (NYSE:GE) and Citigroup (NYSE:C) as the best stock to measure the health of the overall U.S. equity market. Based on the stock's recent performance, things are looking pretty good.