Financial Stocks Lead Markets Higher
The major financial stocks have been one of the weakest sectors for most of 2011. Nearly every trading day since early May, which was the start of the stock market correction, the financial stocks have come under severe selling pressure. This morning, the financial stocks are actually catching a bid in the market and leading the major stock indexes higher. The financial stocks account for roughly 14.0 percent of the broad based S&P 500 Index.
Leading financial stocks such as Goldman Sachs Group Inc.(NYSE:GS), Morgan Stanley(NYSE:MS) and Wells Fargo & Co.(NYSE:WFC) are all trading higher this morning. These stocks look to be catching a bid from a sharp oversold condition on the daily charts. It is important to note, that while these leading financial stocks are trading higher today they are still very weak trading below the daily chart 50 and 200 moving averages. This tells us that today's rally in the financial stocks could be short lived.