This is why last Thursday and today’s price action is really important for the financial sector, as Goldman appears to be waking up, gaining strong momentum.

Goldman based in a very tight range near the 200 day exponential moving average, and last Friday broke its short term downtrend being defined by the 20 day moving average. Today, Goldman stock price confirmed the move with a big momentum spike breaking the 50 day moving average, effectively breaking the medium term downtrend.

The short term measured move for Goldman is to reach a target around $180, although it can charge higher if an earnings momentum run develops.

The move in Goldman will certainly be helping the entire financial sector that has been lagging the S&P 500 for the last 3 months, and today’s action confirms that Goldman might be the leader of the pack as Morgan Stanley (NYSE:MS) and Bank of America (NYSE:BAC) are moving higher.

Morgan Stanley’s chart is not as compelling as Goldman, as it still needs to break the 50 day moving average, however it gapped considerably higher and it is breaking its downtrend.

Bank of America after a tight downtrend it’s on the verge of breaking both the 20 and 50 day moving averages, which should spark a big momentum move.