The S&P Financial Index Divided by the S&P 500

Here’s an interesting chart. This shows the S&P Financial Index (^SPSY) divided by the S&P 500:

There are three major low points. The first is from October 29, 1990 (0.1533). The next came nearly ten years later on March 9, 2000 (0.1927). This was not simply a reflection of financials going down, but of tech going way, way up. The most recent low came last Tuesday, July 15, 2008 (0.1910).
What’s fascinating is that the last two lows hit almost exactly the same. Does this mean that financials are ready to turn around? It’s too early to say, but the sector has just had one of its best weeks in years.

Posted by Eddy Elfenbein on July 22nd, 2008 at 9:43 pm

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