Market May Need Some Help from Banks
If you follow me on Twitter, you know I wasn’t enthralled with Friday’s session. While price action in the major stock market indices was strong, more stocks were down on the day than up. Additionally, banks reacted poorly to earnings and high yield bonds closed at their low of the day. Again, it was only one single day, but there was some mild weakness beneath the surface.
On the sector front, there isn’t much new. Discretionary is the lone leader among the four key sectors. Semis and transports continue to be the most frustrating for bulls and bears as strength is sold and weakness is bought without much progress being made by either side. Banks are a little weaker as they head to the lower end of their range. With earnings being released on a daily basis, we should see some large moves. As I mentioned on Fox Business with Charles Payne the other night, the most bullish thing the banks can do is to go up in the face of bad news. That kind of behavior could signal the start of a major rally in financials which would certainly juice the broad market.