Even as the S&P 500 (NYSE:SPY) hit new highs and managed to eke a gain today, financials continue to be a drag. The sector (NYSE:XLF) continues to trade in a very tight range as it deals with its 50 day moving average.
Goldman Sachs (NYSE:GS), the bellwether of the sector is still trading just below its 50MA, showing continuing weakness as it’s unable to resolve to the upside.
The financials have been leaders in the past and have been the culprit of the big upside move from the March lows. The recent run up in the market has come from riding on commodities and some select technology companies, a worrisome fact for some analysts that fear the market has outpaced fundamentals.