Berkshire Hathaway is technically neutral, in a low-peak/high-trough range pattern like Citigroup and BlackRock; October strength has not broken the range but it is close, so monitor for an exit.

Now, of course, we cannot talk much about the financial sector without mentioning Berkshire Hathaway. Berkshire Hathaway is the largest-weighted stock in the XLF fund, and frankly, I think we all know it's not really a financial stock in the strictest sense.

It is actually more of an industrial conglomerate than a financial company. Of course, it represents Warren Buffett's holdings in many different companies, and names like "Coca-Cola" and others that are certainly not in the financial sector.

But it is classified within the financial sector. It is listed with a weight in the XLF index, but it is not a bank in the conventional sense or something we usually follow. They certainly have a good reinsurance business as part of their operations as well.

From a technical standpoint, I see Berkshire Hathaway's stock as still being completely neutral. I interpret this as a “file ” pattern, which is a pattern of low peaks and high troughs, but it is similar to Citigroup and BlackRock that we have already reviewed, i.e., it is neutral.

Let's wait and see if and when we will get out of this range . Berkshire Hathaway is not scheduled to announce its earnings this week, but as the biggest player in XLF, I think it's worth checking them out if we're going to talk about the sector.

This is one of the most influential weights. October has been very strong so far, but not enough to break out of that pattern. We are very close to doing that, and that's why I think it's important to monitor the situation.