Chart of the Day - Tuesday, January 30, 2024

🏆 Today’s Chart of the Day was shared by @F4DE2Bl4CK.

• The Financial Sector ($XLF) outperformed the S&P 500 today by the widest margin in over six months. It closed at a 2-year high, about 5% below all-time highs.

• Tech gets all the attention, but Financials have done just as well during the recent leg higher. Tech ($XLK) is up +25.60% since the Oct. 27th low in the S&P 500, while Financials ($XLF) are up +25.39%.

• The sector also has very healthy breadth right now. Of the 75 stocks in $XLF, 97% are above their 200-DMA, while 94% are above their 50-DMA.

The takeaway: Financials have shown impressive leadership since the Oct. low. It has become the second-largest sector of the S&P 500, and it’s bullish to see that Tech isn’t the only area working.