It's all about the long term trend in IYF. Note over the years how every trend-line touch has led to new highs in the group, but we're not seeing that now. Also note how the trend-line touches are increasing in frequency. From this vantage point, financials are in a long term trend that has lost it's steam.
After doing some digging and rough math, it appears REITs make up 15-20% of the index. They've been taken to the woodshed since February. So, maybe they're just the drag on the group. Is that enough of an excuse? Perhaps.
All i'm saying is it takes some balls, in this dog shit market, to declare something that's lagged the whole bull market as new market leaders until it makes new highs.
What say you?
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