As the stock market slowly recovers its strength, participants are understandably getting nervous about the lack of progress in the last few days. The major indices have stalled since last week, prompting many to wonder if perhaps the January rally will prove to be a classic “bull trap” and eventually fail. In today’s report, I’ll provide supporting evidence from the financial sector which refutes this fear while providing comfort to the bulls.
Whenever the market has posted a bottom after a steep decline, it’s important to watch for signs of leadership in certain key areas.