The financials are a very important influence on the broad indexes currently as verified by today's drama with XLF 15.67. According to Keystone's algo, the markets will remain weak if the XLF stays under 15.67. Banks such as BAC, GS, C, WFC and others will impact the XLF. The chart above shows BAC with price now in the apex of a rising red wedge pattern (bearish) with negative divergence across the indicators (bearish) and overbot stochastics (bearish). A stutter step sideways may be in order for a few days but overall the chart will want to roll over and head lower moving forward which would create negativity for the XLF as well. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.
Note Added 12/5/12 at 5:14 PM: Huge 6% move higher today. C canned 11K employees today and both C and BAC were goosed. This creates the stutter step move but it was a push higher rather than sideways. Let it settle a few days but the same basic analysis should hold despite the rocket launch today.