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Today was an important step forward in the market’s breakdown. When the biggest banks, which have unlimited access to however many trillions of dollars they demand from the US Government, can’t manage to blow earnings expectations out of the water, you know something is wrong. From a charting perspective, the financial sector leaped to the other side of its breakout (note arrows), thus completing a failed bullish breakout.
As Slope’s earnings calendar shows, next week will be jam-packed with bank earnings as well, which should add even more clarity to the situation.