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If you're banking on a financial breakout, it's already happening, technician says

Financials in focus

If you're waiting for the financials to break out, it's already happening, says one market technician.

Jonathan Krinsky, chief market technician and executive director at MKM Partners, explained that the market has already seen rotation out of high-dividend-yielding sectors and into cyclical sectors such as technology, materials and financials.

In the last month, the financials have gained more than 4 percent, while defensive, dividend-yielding sectors such as consumer staples and utilities are down more than 1 percent and 3 percent, respectively.

"Really, for the first time in about 12 to 16 months, financials are no longer in a downtrend," Krinsky said during a Tuesday interview on CNBC's "Halftime Report." The Financial Select Sector SPDR Fund is more than 29 percent off its 52-week low.

Despite the trend, Krinsky said that does not mean all financial stocks are screaming buy.

"Our call here is to start picking at some of the stronger financials. We're not saying to buy the European banks yet. We're not saying to buy everything under the sun in financials, but there are some charts that are really telling us that the trend is shifting in favor of the bulls here," he said.

Krinsky said that within the sector, some of the more attractive stocks are Regions Financial, JPMorgan Chase and insurers such as Principal Financial and Progressive.

— CNBC's Pippa Stevens contributed to this report.