Earnings Fail To Inspire: Financials Slump Into Red… And This Chart Should Scare Everyone

Despite what is being called “solid” earnings from financials this morning, the initial bounce in their stocks has faded quickly into the red…

 

However, there is a bigger problem that should be on everyone’s radar…

 

As BMO’s Brad Wishak notes, XLF (the Financials ETF) failed almost to the penny at 2007’s record highs earlier this year, and has broken down through trendlines since.

As Wishak concludes “one for the radar.”