Tuesday, January 17, 2012

Financials in General looking supportive of a BAC short

Financials and most of the market looks like JPM, except JPM s a little further advanced, but this is what I expect the market and financials to do.
 Here's the wedge pattern seen everywhere, the false breakout, which most stocks, industry groups and averages have already begun, JPM has just confirmed the false breakout.

 Here's the same pattern in XLF, it just hasn't confirmed the head fake yet, unlike JPM above.

 XLF 2 min chart shows recent action to be negative, this should be positive on a true breakout.

 The 5 min chart is leading negative

As is the larger trend on the 15 min.

This looks like a decent area to consider financial short plays, there's price strength to short in to, but the underlying action is very weak and right where we want to see it, at a probable head fake move.

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