Financials ETF (XLF) almost doubled the performance of the S&P 500 index in 2012. Can this white hot sector continue to pull the broad market higher?
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XLF is back at resistance line (1) for the third time in the past three years. A breakout above line (1) would be a positive for Financials and the broad market. Right now, resistance is resistance!
The performance of the broad market one year from now, will have much to do with how financials handle this three year resistance line!