Financials Remain in the Fight

Just landed in Miami Beach for the Future Proof Citywide—one of the best finance conferences out there.

This place is buzzing. People like Josh Brown, Michael Batnick, Tom Lee and Dan are all here. 

Even Michael Saylor showed up this morning!

It’s shaping up to be an incredible week.

I rolled in with my friends Steve and Patrick.

These gatherings are always an opportunity to catch up, exchange ideas, and soak in the energy of the industry’s best.

But back to the markets—after two solid days, U.S. equities are in rebound mode.

Now it’s up to the bulls to prove themselves. 

The strength of this bounce will determine whether they reclaim control or not.

When looking for tactical support levels, I tend to focus my attention on pivot lows or key VWAPS.

However, when it comes to the bigger picture it’s all about prior-cycle highs at this point.

A bunch of sectors have already fallen back below their 2021 peaks, but others are still holding the line. 

A prime example is the Equal Weight Financials $RSPF.

This index gives us a broader representation, making it an excellent gauge for the sector’s overall health. 

Buyers are stepping in right at the 2021 highs, turning former resistance into support. This is the classic polarity principle in action.

It means the market remembers this level from a few years back. It still matters.

Many will argue that polarity doesn't work or that there is no price memory going back that far.

This chart begs to differ.

As long as buyers hold the line, financials remain in the fight. 

This is a huge one for the bulls.

But if this level gives way, it could open the door for further selling pressure in the short and intermediate term. 

Alfonso