Two Charts That Indicate S&P 500 Sell-Off, Part 2: XLF
In Part One I pointed out a 5 wave impulse pattern (with a-b-c corrective waves) nearly completed.
I also postulated the following formula:
Inter-market analysis suggests the following formula (from Don's book of logical assumptions).......
E = MC x 2. Translation: Energy = Momentum Change x 2 ( XLE momentum change and XLF momentum change). To me, both are heading lower.
The XLE looks to be heading lower. The XLF looks to be heading lower. Are these two major components going to lead the S&P-500 lower?
The evidence suggests yes.
The above in XLF , and the in XLE (Part 1) both suggest trouble ahead for the S&P-500.
Today I would like to close with a quote from Jack Yelton: “There is a very easy way to return from a casino with a small fortune: go there with a large one.”
I hope this has been helpful, entertaining, and informative. May all of your trades go well. Don.