FAZ Comparison

FAZ is a leveraged Financial 3X Bear ETF. Basically, although it's a shorter term tool, it should look nearly the opposite of XLF, longer charts aren't as useful as these sorts of ETFs are meant for shorter term trading.

 The green arrows mean 3C and price are in line or trend confirmation, the red box is a leading negative divergence from last Thursday as XLF and just about everything else long was being accumulated so this is the exact opposite of XLF/Financials as it should be being a bear ETF. At yesterday's lows there's a positive divergence confirming the negative divergence at yesterday's highs in XLF. Yesterday and today we have a leading positive divergence, this is the strongest kind of divergence, it typically implies stepped up institutional activity, in this case accumulation.

 The 3 min chart shows the same neg. divergence from last Thursday and a nearly diagonal positive divergence since FAZ moved toward the lows as XLF moved toward its highs. The areas of price with white boxes show where there are positive divergences , you'll notice most are at lows, if you knew where the market was likely moving that day based on order flow, you'd want to buy as cheaply as possible too.

The 15 min chart shows numerous divergences sending FAZ up or down, but what's important is the recent positive divergences, especially this week as they are at leading positive highs. If you compare how high the 3C divergences are vs where they were in the past and look at where price was in the past vs now, you'll see this is the largest, most powerful positive divergence on the chart.