XLF-Financials

After that nice trade in BAC yesterday, I'm kind of itching for another set up. Financials of the 3 pillar groups, are definitely outperforming. Technology (XLK) is underperforming and XLE/Energy  isn't doing much at all.

Here's XLF, I suspect it is consolidating, but 'm watching very carefully in case it is more then that.

 This is the 1 min showing in yellow the flat area in which we saw accumulation yesterday for a bounce, a half a day of accumulation isn't going to produce much, but the Euro seems to be the key still. In any case, the 1 min chart is leading negative, again in a flat area (in yellow) which is where we see accumulation/distribution often.

 Here's the 2 min chart with a negative divergence at the left in to a small head fake, then the flat area with continued leading negative distribution and then the fall. The second yellow area with the positive divergence is the positive divergence I mentioned so many times yesterday, but again the 2 min chart is leading negative. As I said, I suspect it is a consolidation because of the look of the Euro, but I could be wrong and it could be distribution as the accumulation period was pretty short lived.

 This 5 min chart shows the accumulation yesterday and so far today the 1/2 min charts' negative posture hasn't leaked over, but the 5 min isn't much better then in line, it's not leading positive here.

 Longer term this displays the Euro bounce accumulation I thought we'd see after the initial break of Euro $1.30 and then the distribution that led to yesterday's weakness, note 3C is leading at a new low even though prices relative to the accumulation area still are higher, this is not bullish.

 And even the 30 min chart is leading to a new low, what is impressive is that this timeframe doesn't usually move down or up this fast.

This is the Euro which is the only reason I'm thinking consolidation, the 1 min chart has a little leading area that makes it look like the Euro will gain more ground which should help the market. In any case, I don't see this as a long lasting bounce.