Big banks came to life in 2012 as the Finance SPDR (XLF) started the year strong and ended strong. XLK opened 2012 just above 13 and is likely to finish near a 52-week high. The ETF scored a 52-week high with the move above 16.5 in mid January and is currently around 16.18. The mid November low marks key support for this long-term uptrend. The indicator window confirms relative strength as the price relative hit a 52-week high on December 28th. Relative strength in the finance sector, which accounts for around 15.65% of the S&P 500, is a positive for the overall market. Some of the biggest winners this year include
Bank of America (BAC), Citigroup (C) and Goldman Sachs (GS).
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About the author:
Arthur Hill, CMT, is the Chief Technical Strategist at TrendInvestorPro.com. Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London.
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