BAC Follow Up

Monday the accumulation was there, but BAC was too close to support, as I talked about in this post  yesterday, I felt BAC had been head faked and we almost always see that right before a reversal. As I also talked about last night, Financials were the only big sector we needed to move the market that were dragging, I put up a bunch of financials harts that all looked like they were ready to move into rotation.

So take a look at BAC this morning.

 Here's the head fake from late Monday through yesterday, today it's right back through resistance. The parabolic rise this morning IS the point of the headfake.

On this hourly chart we see BAC wasn't head faked once, but twice. First the above intraday chart, but as I talked about with double bottoms, the second bottom almost always makes a lower low and create what appears to be a failed pattern, drawing in shorts, when BAC moved back above resistance, those short started covering adding fuel to the fire. We especially know it's a head fake when we have a positive 60 min 3C divergence.