The financial sector (measured by the XLF exchange traded fund) has been leading or tracking even with the market over the past 3-months – now it is lagging. Since the FED QE process buys Bonds from the banks, QE is a gift to the banks. If the banks can’t perform well in this environment, the overall market may be in for trouble.
Annotated by NTSM
Thursday, the S&P finished up 0.35% to 1699 (rounded) at the close.