XLF normally moves quite slowly, but we may may be at a moment in which that accelerates substantially, even improving on what has been a phenomenal year.
Weekly -
Daily -
The EW path drawn is what may be expected most commonly - we're looking for that or better.
Weekly -
Daily -
The EW path drawn is what may be expected most commonly - we're looking for that or better.
Comment:
Here is the XLF / Spy spread - if this ends up trending impulsively to the upside then we'll know we're in the right place.
And here's a 5 minute chart. The pink and purple 1-2s could also be an ABC and we're starting the rally with a leading diagonal (just like the spread chart), and that goes for all of the indexes as well... it's normal but we could have a bit of chop before we really get going if that's the case. Will update soon - but we'll know if we end up getting a 4th wave to 50% before we reach the 138%.
And here's a 5 minute chart. The pink and purple 1-2s could also be an ABC and we're starting the rally with a leading diagonal (just like the spread chart), and that goes for all of the indexes as well... it's normal but we could have a bit of chop before we really get going if that's the case. Will update soon - but we'll know if we end up getting a 4th wave to 50% before we reach the 138%.
Comment:
Try again - here is the spread chart :-D
Fundamentally (I wish it would let me paste the images) we are basically getting a third Zweig Breadth Thrust, we just made a massive turn to oversold and back again (80-80-80 Signal), and historically we rebound very well 80% of the time after a down month when Dec, Jan, and Feb were positive (Turn of the Year Hat Trick)...
So I have some reasonable confidence this is going to work out... and if I'm right about going into a 5th wave I think XLF options will pay better than everything except for maybe SMH calls.