Banks Looking Bright:
Rotation continues in the market and on a YTD basis heading into Wednesday “value oriented” sectors were still firmly in control. Topping the list is healthcare higher by 8%, followed by the financials. Below is the daily chart of the XLF and we have been constructive on the space since the bullish piercing line candle. That set off a nice run with the fund advancing 9 of the next 10 sessions. That day also filled the huge election-related earnings gap from 11/5. The best thing this could do now would be to consolidate after that robust run. Candles have been instrumental near-term tops with a couple of dojis, the first a gravestone doji on 11/27, which sent the ETF scurrying lower 11 of the next 14 days. This time around, at least so far, it does not seem to be affected by the one last week. We frequently like to check in on the top holding BRK/B, at nearly 12%, as this will have a big impact on the group. Wednesday it rose 5% and is approaching a double bottom with handle pivot of 475.03. Fellow top 5 holding V is sporting a solid MONTHLY look, even though it has lagged rival MA over the last decade. The break above the bull flag trigger of 275 carries a measured move to 380. Both these names can keep a bid under the sector if they keep their solid uptrends intact.