The financial ETF XLF loves what it heard last week.
Since recent Fed speak, relative to major U.S. sectors, financials are screaming higher. Check out the tail end of this chart comparing the performance of XLF and SPY.
Judging by the buzz on Financial Twitter and other financial blogs, we are at a major inflection point in the U.S. market.
We offer no predictions about where the major market averages will go from here. What we are interested in is where investors should be when the market tips its hand.
If the market breaks higher, which asset is performing best?
If the market breaks lower, which asset is performing worst and should be avoided or shorted?
These are the issues our algorithms are concerned with – not deciphering Fed remarks.