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Financials hit record highs in late 2025. Volume has declined for six straight months.
One of those facts is a buy signal. The other is a warning. They can't both be right.
Price making new highs on shrinking volume is one of the oldest divergence signals in technical analysis. It means fewer participants are driving the move. The buyers are running out.
XLF sits at fair price for 2026. The consumer finance stocks inside the sector face even bigger headwinds as stagflation squeezes consumer spending and credit quality.
When sectors start topping, I stop fighting the chop.
Six months of declining volume on new highs is the market telling you the easy money is gone. What comes next is messy, headline-driven, and brutal on stock traders.
That's exactly why I moved to the E6 Futures. One market, 24-hour liquidity, and a system that spots setups 12 hours before they trigger. No sector rotation guessing. No earnings landmines.
Since May, that system has delivered 628% compounded returns while traders fought over which stocks would crack first.
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