BAC and Financials

Yesterday afternoon under the post, Financials Update I showed you a few charts of the negative divergences and a rounding top. Today Financials are being hit. FAZ is doing pretty well, BAC is not. So far it's down about 3%. BAC may be offering a decent risk:reward trade. 

A short on BAC can be entered here with a stop above yesterday's highs at $13.45. With the way financials are looking, I'd say this is a bounce that is ending and BAC very well may continue the 7 month downtrend it had been in. I like the trade here, it makes sense as the risk is rather limited.

FAZ is another to take a look at, it's up +2.43% . Again, this is a fairly low risk, high probability trade with a stop below yesterday's lows around $9.40-about $.29 risk per share.

As you can see, BAC has erased yesterday's gains and is currently at a support level, if this support is broken, BAC could see a nasty move down.