Thursday, August 11, 2011

Financials

 FAS Financial Bull confirmation 1 min

 FAS confirmation 5 min

 FAZ-Financial Bear, coming very close to a false breakout which would send t much lower.

 FAZ 1 mn confrmation

 FAZ 5 mn confirmation

 XLF-Finanials, I captured these last, so the 1 min negative divergence makes sense to me.

XLF strong 15 min.

As I mentioned earlier, expect volatility and head fakes around important levels of support/resistance.

The DIA/QQQ are showing 1 min negative divergences, and they have broken out through the inverse H&S, the pattern is too obvious, but technical traders are taught if a pattern false, you take the other side of the trade, so a break back below the breakout point may very well be the head fake I've been expecting today. However, the long term harts remain very strong, so a head fake is what  expect, it's probably what we'll see, volatility should be high, but the path of least resistance after the games is indicated as up.

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