Tuesday, August 31, 2010

XLF:SPY ratio

The best hope for Hope now is that this ratio of financials to the broad market can hold this level and start to show some relative strength...

...as the ratio has once again tested its most critical support.

When the ratio dropped into the beginning of the year, I was inclined to give it the benefit of the doubt (I even labeled myself a "bank bug" at one point) but now I am just not so sure, especially considering the most dreadful appearance of the ratio's point and figure chart.