Monday, March 17, 2008

A Closer Look At the Financial Sector

With all of the concern about Bear Stearns yesterday and the ongoing problems in the credit markets, it seems like a good time to look at some parts of the financial sector. The charts are from

The asset management sector just recently broke a 5-year uptrend. It is currently consolidating in a triangle consolidation pattern.

The credit services sector was a very boring sector for about three years, trading in a solid range. Then the sector made a clear break below support and took a nasty nose dive. It is currently trading at levels from early 2003.

The diversified investment has jest barely broken an uptrend.

Money center banks consolidated from the beginning of 2005 to the last quarter of 2006. After that they rose for about a year and a half and formed a double top. Since then they have been in a nosedive thanks to the mortgage market problems.

National brokers consolidated in a triangle pattern from the beginning of 2004 to mid-2005. Then they went into a two year rally, forming a double top in early 2007. Since then they have been selling off because of problems in the financial markets.