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.