Invested Central Chart of the Day 11.5.10
For more information, please visit our website at www.investedcentral.com The Dow Jones US Financial Index measures the performance of the financial sector of the US equity market. Component companies include banks; insurance companies and brokers; real estate companies, including REITs, real estate holding and development companies, and real estate services companies; financial services companies, including asset managers, consumer finance companies, specialty finance companies, investment services providers, mortgage finance providers, corporate closed-end investment entities such as investment trusts and venture capital trusts; and non-corporate, open-ended investment instruments such as open-ended investment companies and funds, unit trusts, ETFs, currency funds and split capital trusts. Strength in financials usually translates into overall strength in the US stock market. On Thursday, the Dow Jones US Financial Index broke out above 271 resistance after that level had held on several occasions. Multiple failures makes a breakout that much more meaningful when it finally occurs. Overall market volume was very heavy and that adds to the short-term bullishness. We’d expect financials to act much better on a relative basis now that this breakout has taken place. Watch the 271 level as critical near-term support now.
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