The financial arena is the last place I would want to put my money given everything that has gone on in this sector, but they are acting surprisingly bullish. Here you can see it breaking out of a bullish wedge and holding it’s own and to confirm the strength you can check the RSI. It broke above a declining trendline that had many confirming points and has backtested it. If it can remain above this trendline than the rally in financials and the overall markets should continue into 09′.

I realize that bullish wedges are quite common in bear market rallies and until this upturn proves to be anything but that I’m still in the long term bearish camp. I just don’t want to miss out on what I believe is another 10-15% move up from these levels.