In recent weeks Financial stocks have been the most bullish U.S. stock market sector. This rally could be the last gasp of a dying bull market.
The daily charts of State Street – Financial Sector (XLF) and State Street – Technology Sector (XLK) courtesy of Trading View illustrate their relationship.
Technologies have been the true leader of U.S. stocks. Their growth from late March 2026 to June is more than twice the gains made by Financials March to July. More importantly look at what’s been happening to XLK since mid-June. A steady decline.
Also, since May XLK has made four bottoms just above 170.00 with the low point at 170.83.
A break below 170.00 could trigger a rapid decline back to the late March 2026 bottom. If this break occurs it could be very bearish for the broader U.S. stock market.
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