Wednesday, January 11, 2012

XLF Finally Breaking?

Earlier I showed you the momentum indicator for financials and it was quite a bit stronger then the S&P. We are at the point right now in which the intraday charts have been suggesting all day.

 The intraday trendline broken on a quite large candle.

 This is what 3C has been suggesting all day.

The bigger play here is this wedge, it's big enough and lasted long enough that it should be a very obvious feature which is exactly why it would have seen a breakout/ head fake. yesterday provided the momentum to break above the long term pattern. Although a move below the apex would be pretty good confirmation of the suspected head fake break out failing, a move below $13.40 would be more convincing as it would rule out a simple gap fill pullback.

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