If the financial doesn't make a new high next week

cboom

Then we should expect a correction for overall market very very soon

The financial sector is the leading indicator for this rally since it was the sector which was beaten hardest.

For the rally from march to june 11th, the financial peaked on may 8th. The overall market didn't go down immediately because material and oil sectors took the turn to push the mkt higher from may 9th to june 11th. When the energy sector went down on June 11th, the overall market started to weaken until jul 13th.

For the rally from jul13th to now, the financial peaked on Aug 28th. Even though the overall market went higher from Aug 28th to now, financial failed to make a new high. A head and shoulder pattern would be formed.

If the financial sector can't make a new high and energy sector start to retreat next week, we should expect a pullback is happening.
It should correct to 1000, 990, 980, 950 levels.

patsfan

great observation thanks for sharing