A Closer Look At the Financial Sector

Yesterday, S&P downgraded three members of the financial community, essentially saying there were more problems coming down the pike. Let's see how the sector is doing fromo a trading perspective.



Notice the following points on the long-term chart.

-- Prices broke through their downtrend in May in an attempt at a rally. But they have since fallen.

-- Prices are below the 200 day SMA

-- Prices have broken through two smaller support lines that started in April



On the three month SMA chart, notice the following:

-- Prices are below all the SMAs

-- The 10 and the 20 have moved through the 50

-- The 10 and the 20 are both headed lower

-- The 50 just turned lower as well

Short version: this chart says sell me.