Financials Breakout and DJIA 18,000

Technical Strategy | Jonathan Krinsky, Executive Director, Chief Market Technician | December 7, 2014 (Read Report)

Another week, another set of new record highs for the S&P 500 and Dow Jones Industrial Average. As all eyes focus on the Dow 18,000, we find it fascinating that the index has not seen a daily decline of 0.30% or more since October 22nd. That streak of 31 straight days is the longest such streak since 1965, and the second longest in history. Much like the SPX streak of days above its 5 DMA, the sample size of such occurrences is very small, so its difficult to extrapolate too much from it going forward. On the sector level, we have been increasingly positive on financials, and Friday looked like confirmation of this as many broke out to multi-month and multi-year highs. While some are a bit stretched in the near term, the relative strength vs. the broad market looks to have plenty of runway over the next few months. Bullish Charts: AMTD, C, CME, FII, GS, MMC, MS, SNV, STI, STT (Read more)