The equity indices closed mixed on Tuesday with the Dow Jones Industrial Average, the Nasdaq, and S&P 500 closing higher and the Russell 2000 closing to the downside.

The DJIA gained 38 points to close near an all-time high of 20,090. The S&P 500 gained a fraction to close at 2,293. The Nasdaq was higher by 10.6 points, closing at 5,674 and the Russell 2000 fell 5.5 points to close at 1,361.

When we gave our SST Weak Buy Signal on Feb. 1, we had the S&P 500 gaining between 20-40 points. That would have put the S&P 500 at 2,299.  The S&P 500 high on Tuesday was 2,299. The minimum price target has been reached. It remains to be seen if the markets reach the high end of our target.

The S&P 500 Trust Series ETF traded less than 60 million shares. The S&P 500 has traded more than 100 million shares one time in 2017. This is an incredibly illiquid market. Any news that the market perceives to be bad can send the equity indexes down 10% in a short period.

What type of bad news can start the avalanche to the downside?  It would appear that one trigger could be the Federal Reserve raising interest rates on March 15.

It would be prudent for traders and investors alike to stay cautious and defensive in this stock market.

So, what sector appears to have a trend that is trader and investor friendly at this moment?  The financial sector appears to have such a bullish setup, not only on the daily time frame but weekly time frame, as well.

The Select Sector Financial ETF

 is one such vehicle.

In addition, Bank Of America(BAC) - Get Report has a bullish technical pattern and is currently trading at its 22-day moving average.  The weekly Trend in Bank of America is also bullish.

Attached is a chart of the daily time frame in the Bank of America that shows the closing price at the 22-day moving average. Also, for traders, the hourly time frame is extremely oversold and Bank of America should move higher on Wednesday.

Although the equity markets are trading in a narrow trading range, there are trading opportunities.

This article is commentary by an independent contributor. At the time of publication, the author was long in the Bank of America.