Financial Sector Dragging the Market

The Financials Sector is the weakest area of the S&P 500 in today's session, currently down 0.2% on the day. The weakest stocks currently in the S&P 500 Financials Sector are: 1) Goldman Sachs GS: Shares of Goldman Sachs are currently trading down 1.9% from Friday's close to $134.58. After failing to break above $140, the stock appears ready to test key support at $131.50 – just above its 52-week low of $128.56. 2) PNC Financial Services PNC: Shares of PNC Financial Services are currently trading down 1.8% from Friday's close to $56.75. The stock broke below its 200-day simple moving average (one year daily chart) in Friday's session. The next key support level for shares of PNC does not come into play until $53.36 – 6% lower than the current trading price. 3) Wells Fargo WFC: Shares of Wells Fargo are currently trading down 1.7% from Friday's close to $26.87. The stock has tried, and failed, to break above $27.62 four times in the last thirteen trading sessions. A test of support at $25.35 appears likely. 4) Regions Financial RF: Shares of Regions Financial are currently trading down 1.6% from Friday's close to $6.17. The stock's 50-day simple moving average has crossed below its 200-day simple moving average (one year daily chart), which is a bearish technical indicator known as the “Death Cross.” 5) Keycorp KEY: Shares of Keycorp are currently trading down 1% from Friday's close to $8.22. A bearish head and shoulders pattern has taken shape on a one year daily chart. A move down to $7.42 would complete the pattern. Strength in the Sector: The following stocks are showing signs of strength despite overall sector weakness: 1) Discover Financial Services DFS: Shares of Discover Financial Services are currently trading up 2.6% from Friday's close to $23.69. The stock is looking to break above its 50-day simple moving average (one year daily chart), which is currently at $24.01. A break above that level could lead to a test of the 52-week high of $25.76, which was set on May 19th. 2) Janus Capital Group JNS: Shares of Janus Capital are currently trading up 2.1% from Friday's close to $9.42. The stock has recently found strong support around the $9.05 level. A test of $9.57 resistance appears likely. 3) Capital One Financial COF: Shares of Capital One are currently trading up 2% from Friday's close to $49.80. The stock has lost 12% since hitting a 52-week high of $56.26 on May 19th.