The ratio chart for the SPY vs. XLF has turned down after 3+ months of SPY outperforming XLF (the benchmark outperforming the Financials).
After Thursday's upside thrust in XLF, the Financial ETF appears to have started a new upleg in relation to the SPY, which means that money should begin to come out of the benchmark and enter XLF.
Notice the ratio has declined and violated its 3+ month up trendline, providing additional conviction that XLF (KRE and bond yields) have started a period of relative, if not absolute, strength.
Our Model Portfolio is long SPDR S&P Regional Banking (MX:KRE) ETF and ProShares UltraShort 20+ Year Treasury (NYSE:TBT).