Finance Sector – Musings

The sector has flashed several signals that, in light of the recent market rally, simply should not be there. We take such warnings under advisement. In this report, we examine the technical backbone that rarely makes it into mainstream financial commentary. While headlines continue to focus on narratives, price action is quietly reshaping probabilities beneath the surface. Let’s take a closer look at the data, apply a statistical lens, and outline the expectations and most probable paths forward. Candles The first signal arrived on Friday. If we look at the major Finance players, JPMorgan, Bank of America, Wells Fargo, Citigroup, and Berkshire, the backbone of the Finance industry, all closed the week with strong bearish signals. These signals were strong enough to challenge, and potentially cap, the recent rally. From history, we know that the financial sector often acts as a harbinger for sizeable market moves, frequently starting major reversals…