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EchoAlphaBravo

Double Top Forming on XLF / Financials

Short
SPDR Select Sector Fund - Financial (AMEX:XLF)  
EchoAlphaBravo  
AMEX:XLF   SPDR Select Sector Fund - Financial
Trend Analysis Chart Patterns Technical Indicators XLF financials SPX (S&P 500 Index) DOW nasdaq short Bearish Patterns Double Top
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trendanalysis chartpattern indicator xlf financials spx dow nasdaq short bearish doubletop
XLF is approaching massive resistance at $30, the peak prior to the Great Recession. It appears to be forming a double top, which if cleared will open the door for a huge rally. Conversely, a failure would open the door to a large correction. Very short term (next week or so), I think we see buyers lift prices (I'm long 3/29 $29's), but I believe we ultimately fail at $30, a level I'll short against. Given broader weakness, European banking issues (DB is crashing), overly bullish sentiment, and the aforementioned technical picture, it seems to be a good setup.
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