Time to test the 200 Daily SMA

Short

SPDR Select Sector Fund - Financial (AMEX:XLF)

Updated

AMEX:XLF SPDR Select Sector Fund - Financial

indicator

Divergences in the momo indicators. I am thinking a deep pullback to 200 Daily SMA, the red MA on the chart. Nicely lines up with SPY in the previous idea. Either all of these indexes will honor the divergences or none will. What do you think?

Comment:

SPY set a new ATH today. XLF could only muster a higher high and higher low. Not bad for a bullish move considering how heavy these divergences are. One of two has to happen - either SPY and XLF turn down or they continue their upward journey. Given today's action, I am inclined to upside. Tell you why - we are in an exceptionally bullish environment today. None of the patterns and setups on bear side work anymore. Unless there is a confirmation to the downside, do not bet bear.

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.