US equities remain under pressure as the major indexes break below key VWAPs anchored to their lows.
Meanwhile, critical polarity levels are serving as stiff resistance across key sectors and industry groups, capping last week’s bounce.
Whether it’s Semiconductors, Financials, or Software, buyers continue to struggle in reclaiming the broken support levels from earlier this month.
The SPDR Financial Sector $XLF is a textbook example of this theme.
After briefly pushing back above the neckline of this top, XLF is now getting rejected right around 48.
That means an increasing supply is overwhelming the buyers near those prices.
Sellers are defending critical levels with conviction, opening the door for further downside, choppy action across the board.
We’re seeing this kind of price behavior all over.
But as far as Financials go, as long as we're below 48, the path of least resistance is lower.
And losing Financials is never a good thing for the broader market.
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