In addition the recently dovish fed in a still tight labor market will likely increase and marginal costs weighing on financial's and corporate companies' alike profit margins. These factors will make and guidance difficult this coming season (april-may).
From a technical perspective the financials have rallied with the market since the Dec. 24 bottom. XLF has underperformed as rates have fallen and now is hitting fibonacci resistance making a lower high with hidden negative divergences on the . AMEX:XLF
Expect momentum to turn downward and and guidance through april and may to only serve as a catalyst for lower prices in the financials sector.
fundamentals are still very poor however