Monday, October 24, 2011

Financials Request

I was a bit surprised looking at financials. In fact I checked the sector reading and expected to see then much weaker.

 Financials (green) are pretty strong today  (relative strength vs, the S&P). With the Euro up so much, I was surprised Energy didn't post better readings and with the Q's up so much, the Tech readings were a bit of a surprise.

 I started with XLF (Financials) and saw the intraday trend on the Trend Channel close to being broken to the downside. ADX on this timeframe is also starting to signal the end of the trend as it reverses down from above 40.

 XLF 1 min has gone negative in a flat area.

 XLF 2 min is leading negative.

So is XLF 5 min

 Since XLF, FAS and FAZ are each different averages and trade different volumes, etc, I looked at both FAS (Financial Bull 3) and FAZ (financial Bear 3x) to see if there was any confirmation. Above is FAS 1 min which looks worse then XLF 1 min.

 FAS 2 min looks worse then XLF 2 min.

 FAS 5 min looks about the same as XLF 5 min.

 And Fas 15 min look plain bad.

 Here's FAZ (Financial Bear) with the same Trend Channel settings as XLF and it is close to breaking the intraday downtrend as well as having ADX turning down from above 40 which also signals the downtrend is ending.

 The 1 min chart looks super.

 As does the 2 min chart.

 The 5 min chart looks moderately good.

And the 15 min chart looks very good.

I would keep an eye on what financials are doing, they may lead the market.

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