By Andrew Nyquist
The S&P 500 has found a friend to assist in its attempt to break above the descending upper wedgeline and 200 day moving average: The Banks, and notably The Bank Index (BKX). While I think The S&P 500 could take a couple days to sustain a break above this key resistance, I also understand that it is holiday season (positive seasonality) and the inverse head and shoulders pattern could bring some extra holiday cheer for the bulls.
Note as well that The Financial Select Sector (XLF) has cleared its 50 day moving average and has some room to the upside. See annotated charts below. Remember to manage risk by employing stops. This rally could have legs — Tis the season.
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Position in S&P 500 related index fund (SPY) at time of publication.
Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of his employer or any other person or entity.
