Regional Wobbles:

On a YTD basis the financials have been a soft performer to put it mildly. The XLF is the second worst major S&P sector in 2020 with the ETF lower by more than 18%, besting only the woeful energy arena. If we dig a little deeper into the space the KRE has been underperforming, lower by 32% from most recent 52 week highs, while the XLF is off “just” 21% from its annual peak. The technical complexion of the KRE chart has changed for the better recently, as it broke ABOVE a bearish descending triangle, and we know from FALSE moves, come fast moves. Meaning when a tradable instrument moves in the opposite direction that it traditionally does, the move can be explosive as the formerly anticipated direction has to be unwound. On its WEEKLY chart there is still work to be done as it trades into a bearish dark cloud cover candle from the week ending 6/12 that fell almost 12% in the largest WEEKLY volume in almost 2 years. Below is the daily chart of the KRE and remain optimistic as long as it remains above the 200 day SMA, which it has been below since late February.

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