Financials are under continued pressure-remember last week they were basically holding the market up as they performed very well. I said then it would take several days to unload the accumulated position. So I compared 3 charts all related to financials to see if there was confirmation among them, below is XLF, FAS (long leveraged financials) and FAZ (short leveraged financials). The charts are remarkably similar.
FAS 5 min -long financials -very negative
FAS 10 min -negative
FAS 15 negative
FAZ-since FAZ is the inverse of FAS above (it is short financials) I'd expect to see accumulation to confirm what is being seen in FAS and XLF-Positive 5 min
FAZ positive 10 min
FAZ positive 15 min
XLF is financials itself with no leverage, for the above charts to be confirmed, it should look the opposite of FAZ (it should be negative) and similar to FAS. 1 min negative
5 min very negative in XLF
XLF 10-min negative
XLF 15 min negative.
So we have 3 independent equities, on 3 different timeframes all showing the same thing, the financials that have been strong are in negative divergences while the (Short financials) FAZ is positive. Confirmation wise, that's a solid 9 for 9.
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