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Banks are on the brink of cracking a critical level

Annie Pei

The chart of the financials has reached a very precarious level, according to TradingAnalysis.com founder Todd Gordon. Not only is the financials-tracking ETF ( XLF ) down about 1.5 percent year to date, but Gordon says its underperformance relative to tech stocks makes it among the most vulnerable in the event of a market pullback. Gordon believes any weakness in the XLK could trickle down to financials, and push the XLF tumbling below that level.