The weekly BKX is getting into the red alert area now with a weekly 12 count but we still could/will drop a bit. As Goldman, which does not belong to this index, has a weekly 12 as well and is approaching the 60 level slowly - that should put us on alert. Especially with all the negative press, Goldman suddenly gets at the low - a typical thing to happen as more and more analysts turn negative, which is a good contra-indicator as these ladies and gentlemen do not have a good track record for timing at all. The XBD has a good support around 70, so we get very close for a bottom in financials. We will follow very closely the situation since it is a crucial sector for the overall market. Although some single financials still are not finished to the downside, as Citi or MS, but we still might get temp lows soon. On MS, we make a special as it is testing a crucial support right now and we should wait and see how it handles that before we update the picture for MS and Citi.Excerpt:
http://www.cnbc.com/id/27663122
Goldman Sachs: Has Firm Lost Its Midas Touch?
For most of the past century, Goldman Sachs was top of the heap among Wall Street's investment banking firms, but its prospects as a heavily regulated bank are not so bright.
After months of fretting about capital and liquidity levels at banks, the market has turned its focus from Goldman's survival prospects to its earnings potential. Investors clearly do not like what they see.
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