Financials Leading Re-Test Of November Lows


Today the S&P broke below 800 and the Dow came within 100 points of its November 21st intrday low.  The re-test is here!

Interestingly, most sectors are higher than they were back on November 20th – with the exception of financials which have been leading the latest down leg.  In fact, this whole selloff seems to be premised on a vague fear about nationalization and the endgame for the banks.

Volume and the VIX are both much lower than the intensity we had in November suggesting the lows should hold.

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