Financials

FAS Financial Bull 3X

 FAS5 min went from distribution to accumulation and a leading positive divergence, this is the accumulation we expected to see on a fall in the broad market, except quite a bit faster then anticipated.

 FAS 15 min-this is an important timeframe, it went from a negative divergence sending FAS lower to a current leading positive 15 min divergence in 2 days, this often takes 3-4 days or longer.

FAZ Financial Bear 3X

 The 5 min chart showed accumulation over the last few days in to lower prices, it has run up and is starting to show distribution. Distribution/Accumulation will always show up on the short time frames first and if they are strong enough, bleed in to the longer, more important timeframes.

 FAZ 15 min accumulation last week and the 2 day run up, we now see signs of a leading negative divergence or distribution.

XLF

 XLF5 min showed distribution before it fell, now we have a leading positive divergence-or accumulation.

 The 10 min chart shows the same as the 5 min was strong enough to bleed in to the 10 min.

And now we have leading positive divergences on the 15 min chart.

Reversals are often a process, not a 1-day event and Financials are obviously under accumulation. I'm starting to close out my shorts and head towards flat, but I still maintain some short exposure as I think we'll have another day or so of base building at least.