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 TECHNICALS
SP500 Financials (XLF) :  Near Break Out ? 
 September 16 ( From Tradingview  )
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​​The Situation

​​​​​​The XLF ETF tested and broke on ​August 21 ​on the dowside the
​200 DMA ​( Day Moving ​Average ) then at 24.50.
​​( See 1st chart below - Green Line 200 DMA )​

Observe the underperformance trend since August 25 of ​the XLF ​​over ​
the Mighty ​SP500​​: a Rejection of the Resistance Trendline on a Relative
​Basis that goes back since July 23rd 2013
. ​( 2nd chart below - Ellipse )​.

​​But the most interesting Technical Factor for me, ​it is that the ​SP500
​Financials (XLF ETF)​ broke on August 21 a Major Support ​Trendline from
​a Rising Wedge then at 24.58 that started back on October 15 2014.
​ ​​( 1rst chart below - Red Trendline - Ellipse )​.


​​​​​​
SP500 Financials ​( XLF ETF ) is trading within a technical pattern called ​a Pennant ​with todays level of 22.72 as support and 23.39 as resistance.​. It could become a major reversal for XLF...

Why so:
1) That was preceded by a Sharp Price move ( in our case on the downside ) that was done on Heavy Volume
2) ​​They form with lower highs and higher lows and makes then converging Trendlines
​( See Chart Below - Grey Trendlines )​
3) Volume normally expands at the start of the flag or pennant, contracts as the pattern develops and then expands on the breakout. ​( See Chart Below - Bottom Blue Area Line )​

So we must carefully follow those trendlines that when triggered, will tell us on which side the Break Out will
be. Also the meeting on September 16/17 by the FED could add tremendous volatility to the market as they prepare to do their first hike...​​ ( See Second Chart Below - Ellipse )​





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SP500 Financials (XLF) : Near Break Out ?    $SPY, $XLF   #Trading #Investing  #xlf #SP500

RATIO
SP500 Financial Sector (XLF)
over SP500 Index
21 DMA ( Red Line )​


​SP500 Financial Sector (XLF)
​20 DMA ( Day Moving Average - Yellow Line )​
50 DMA ( Day Moving Average - Red Line )​​
200 DMA ( Day Moving Average - Green Line )​
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