A Shaky But Serviceable Foundation

The strength today seen in the XLF, financial sector ETF, could easily be the long-awaited breakout in the space that many have been expecting, what with rising rates and an oversold Berkshire Hathaway (the largest XLF component). 

But, as you can see on the daily chart below, the XLF is already screaming overbought, punching up through its upper Bollinger Band. Beyond that, breakouts have been slippery for a while now, as the highlighted triangle pattern spans since last Christmas. 

Big banks are acting well today, though, and this is all going to be much more important than the likes of FXCM rallying from a crash, for example.

Regional banks may also be an area worth studying up on this weekend if the financials finally sustain a rotation.