Mortgage Finance Index Is Vulnerable

Since March 17th, the S&P500 has rallied nicely but the mortgage Finance Index (MFX) has gone sideways. In my opinion this is a sign of weakness and alerts me to the possibility of these stocks selling off. You'll also notice the symmetrical triangle formation that has developed over the past 2 months. A move below 42.50 would be very bearish for the mortgage financial stocks.