themarketzone
Short

Despite yesterday's turn, $XLF still looks bearish

AMEX:XLF   FINANCIAL SELECT SECTOR SPDR FUND
Yesterday's turn, following the attempt to break the 2060$ in SPX             has created a long tail Pinbar in $XLF.
Considering that we experience a pretty volatile summer market, I'm very cautious with price action patterns and I don't jump to conclusions when ever I see a strong price movement ..and it doesn't matter the direction of the move.

That is why I took a bearish position on $DAX and $SPX             following Monday's rally and that is why I was bullish yesterday when $SPX             reached 2060$ and $DAX touched the 11,000 support zone .

Back to $XLF - The important thing to take out of $XLF chart is that the price broke below the rising Wedge pattern, providing a bearish signal. As long as the price stays below this pattern I will focus on bearish opportunities.
The second thing is that the price is still below the 25$ resistance zone .

I see two zones I'm interesting in - 25$ and 25.2$.
The first is the current structure zone - now resistance.
The second is the re-test of the bottom of the broken Wedge and the Fast SMA line (now resistance).

The final target level for THIS scenario is the 200 SMA line.
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Tomer J,
The Market Zone - You trading Edge
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