Despite yesterday's turn, $XLF still looks bearish
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 position on $DAX and $SPX following Monday's rally and that is why I was yesterday when $SPX reached 2060$ and $DAX touched the 11,000 .
Back to $XLF - The important thing to take out of $XLF chart is that the price broke below the pattern, providing a signal. As long as the price stays below this pattern I will focus on opportunities.
The second thing is that the price is still below the 25$ .
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 and the Fast line (now resistance).
The final target level for THIS scenario is the 200 line.