Chart of the Day - Monday, August 24th, 2020

Today’s Chart of the Day was shared on Twitter by Greg Rieben (@gregrieben). It's a 4hr candlestick chart of the Financial Sector ETF ($XLF) over the past three months. The top holdings in this ETF include Berkshire Hathaway ($BRK.B), JP Morgan Chase ($JPM), Bank of America ($BAC), Citigroup ($C), and Blackrock ($BLK). Financials have done pretty poorly on both an absolute and relative basis. The sector hasn't even been able to breach its June highs and is currently testing its uptrend line from May. So far, that trendline remains intact. Nevertheless, Financials are at a vulnerable spot here. Bulls want to see Financials join the party to the upside soon. If they fail to do so, it could spell trouble for the broader market. Keep an eye on this key sector in the near-term!