October 5, 2021, 7:07 pm EDT
The bulls were fighting hard today after yesterday’s loss. During the past four trading sessions, it was a down-up-down-up pattern so it was a tough tight for both bulls and bears. Recently, it became tougher for bulls after making the record high in early September. Dow Jones was down about -3% and Nasdaq was off -6%.
Today’s highlight for bulls is in the financial sector.
- Insurance: AIG, MET, LNC, ING, PFG, PRU
- Investment: IVZ, JPM
- Bank: BAC
Please check out charts of these stocks where most of them made a new local high. While mega techs suffered an outflow of money, these financial companies receive an inflow on the investment.
Rising interest rates, higher investment risks, and searching for a higher return are the potential driving power of this action.
But, today’s 300 points gains from Dow did not change the big picture of weakness where all major indexes were still below their short-term (20 DMA) and medium-term (50 DMA) trend lines. Therefore, the Bulls still need to defend for the next 1-2 weeks to get out of the trouble.