Tuesday, December 08, 2009

Sectors Weighing on the Stock Market

Though large cap indexes have been flirting with bull market highs, we continue to see relative weakness among homebuilder (top chart; XHB); banking (middle chart; $BKX); and regional bank (bottom chart; KRE) stocks.

Although Friday's job numbers were encouraging and led to talk of economic recovery in 2010, the financial and housing markets seem to be telling a different story.