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Volume Advance-Decline of Financials: At the Resistance Zone ?
July 15 ( From Stockcharts, TradingView )
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We observed that the Volume Advance-Decline of the Financials ( XLF ETF )
tend to confirm the price action of the SP500 as you may see in the charts below...
But what we can observe on the top chart below is that we reached the resistance
zone ( according to the the Volume Advance-Decline of the Financials
(7 DMA - Day Moving Average )).( See first chart below - middle panel - blue line )
On the chart below, we can observe that when the indicator of the
Financials reached near the zone of the +-20 mark , history suggest
that we can expect a corrective trend from the current levels.
We reached rge higher level near the Resisance Trendline on
that Indicator. ( See chart below - Middle Panel - Black Lines )
But since January 27, we are making on that indicator lower lows
and lower highs in a huge Grinding pattern.
We are within a big Rising Wedge Pattern that started back at the end of 2014. It needs to break one side to confirm a break down or a break out. ( See first chart below - Ellipse )
On a short term basis, we reached a Resistance Trendline that started back on May 6 now at 25.06.
Only having a daily close above will give us another bull impulse. ( See Second Chart Below - Red Trendline )
"Chance favors the prepared mind."
Volume Advance-Decline of Financials: At the Resistance Zone ? $SPY, $SPX, $ES_F, $XLF #Trading #Investing #xlf #SP500
XLF Volume Advance/Decline % ( Middle Panel - Right Scale - Dots )
7 DMA ( Blue Line )
SP500 Index ( SPX Bottom Panel )
XLF ( Top Panel )
SP500 Financial Sector (XLF)
50 DMA ( Day Moving Average - Red Line )