Despite the overall weakness in the markets on Monday, the banking sector experienced some surprising strength. This type of action in the banks is very significant, as many technicians believe that true stock market rallies need to be driven by positive action in the banks.
Investors could be starting to find some unbelievable bargains, considering the KBW Bank Index reached a record low on Friday of 17.75. Even bad news like dividend cuts at Capital One (COF) and Wells Fargo (WFC) weren't enough to take those stocks down.
Some other sectors that bucked the market downturn on Monday were heavy construction, REIT healthcare facilities and healthcare information.
The market seems to be taking President Obama's spending plans seriously as demonstrated by the bullish action in the sectors that will directly benefit.With this in mind, let's look at two charts from these sectors, along with two bank charts that look technically poised for big moves. To read (and see) more, visit Stockpickr.com.
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