Financials Update

Remember this post yesterday?

Synopsis: " As suspected, the 5 min 3C chart of technology is showing relative underlying weakness when compared to Financials."


"XLK or technology intraday is fading as I suspected it would, Financials at the bottom in green are gaining so there's some sector rotation going on. If you are trading the bounce using leveraged ETFs, I would personally lighten up on the likes of TQQQ, add a bit to UPRO and FAS. All should still perform well so long as the market continues to bounce, but on a relative basis,  think the SPY will show better relative performance gong forward then the Q's and Financials will probably take over the mantle of leader of the bounce. "


While both the Q's and SPY are down today, the SPY is showing better relative performance. The point of the post above was to show sector rotation out of the previous bounce leader, Tech and in to Financials.


Here's FAS:

 30 min 3C accumulation, note how much shorter the accumulation period is then the distribution period, this indicates to me, as I said on Friday, that we would see a post Op-Ex bounce, but that it would be a tactical bounce to add shorts as the market remains bearish.

 Here is decent 15 min accumulation in FAS-XLF showed the same, thus my call on sector rotation into financials yesterday.

 The charts below and above are 10, 5 and 1 min timeframes that show confirmation of the trend thus far,  but I need to examine the market more closely. So far financials are doing well especially on a relative basis.

 Here's the Tech sector rotating out as the bars decline and the financials in green rotating in as the climb.

 Here's XLF today at a 1.42% gain

Vs. Tech, which was the clear leader yesterday, at a .04% gain. Rotation is complete.