XLF Getting as tight as it can get
Picture perfect chart here.
Only 4% between following key levels:
- Support line has been tested 5 times & now coinciding with 50 dma
- Resistance line has been tested 2 times & has been coinciding with 200 dma
Daily RSI convergence confirming price action
While in the middle of those support / resistance lines, 2 major dma's, we are also stuck between the 50 & 61.8 retracement levels (Pre-Covid high to Covid low)
Is the massive $C breakdown this week to be interpreted as a signal of strength or a look into the future for the financial sector?
With $XLK & $XLV having already posted huge recoveries and subsequent gains on the year, is it $XLF's turn to run hot in the reflation trade?
Can $XLF hold its gains if the rest of the broader market continues to sell off lower, representing what would most likely be dubbed the 'Great Rotation' ?
So many questions, however I think this chart & the $SPX chart is all you're going to need over the next month and a half heading into election.
If (lol) - WHEN this thing breaks out, on notable volume and a huge move in the RSI, I think it'll drag the market along with it, whether to the upside or downside.
** I am currently sitting on a bullish $BAC position, so my bias is bullish but it can easily head the other way.
Only 4% between following key levels:
- Support line has been tested 5 times & now coinciding with 50 dma
- Resistance line has been tested 2 times & has been coinciding with 200 dma
Daily RSI convergence confirming price action
While in the middle of those support / resistance lines, 2 major dma's, we are also stuck between the 50 & 61.8 retracement levels (Pre-Covid high to Covid low)
Is the massive $C breakdown this week to be interpreted as a signal of strength or a look into the future for the financial sector?
With $XLK & $XLV having already posted huge recoveries and subsequent gains on the year, is it $XLF's turn to run hot in the reflation trade?
Can $XLF hold its gains if the rest of the broader market continues to sell off lower, representing what would most likely be dubbed the 'Great Rotation' ?
So many questions, however I think this chart & the $SPX chart is all you're going to need over the next month and a half heading into election.
If (lol) - WHEN this thing breaks out, on notable volume and a huge move in the RSI, I think it'll drag the market along with it, whether to the upside or downside.
** I am currently sitting on a bullish $BAC position, so my bias is bullish but it can easily head the other way.
Comment:
Huge bear break
