This afternoon, the leading financial stocks surged higher after Federal Reserve Chairman Ben Bernanke announced his latest and greatest QE-3.5.
The Financial Select Sector Fund (XLF) traded as high as $16.28 a share before reversing course in the final hour of the trading session. Anytime a chart makes higher lows it is always susceptible to further declines in the near term. Today's trading volume on the daily chart of the XLF is also higher than it has been for the past month. This tells us that institutional money could be leaving the equity. Should the XLF decline and fall over the next week there will be daily chart support around the $15.00 level.
Some leading financial equities that are reversing sharply today from the intra-day highs include Goldman Sachs Group Inc (GS), Morgan Stanley (MS), J.P. Morgan Chase & Co (JPM), and many others. When the financial stocks decline it is often a sign that the major stock indexes could be coming under some selling pressure very soon. The large financial stocks are a leading industry group that should always be followed very closely.
Chart of the day: Stock XLF, S&P Futures $ES
Support Level: $15.00