FINANCIAL ICEBERG
Always consider hidden risks
​
 TECHNICALS
SP500 Financials (XLF) :  At Crossroads ? 
​ September 22 ​( 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 22.85 as support and 23.26 as resistance.​. It could become a major reversal for XLF as already we had a false break out on September 16 and that we are back below the 20 DMA ( Day Moving ​Average ) then at 23.07.

​( See Chart Below - Grey Trendlines )​


​​Volume normally expands at the start of the flag or pennant, contracts as the pattern develops and then expands on the breakout. What we saw is that volume on updays ( Dead Cat Bounce ) was done in a lower volume environment, typical of Bulls losing control to
​the Bears.    ​( See Chart Below - Bottom Blue Area Line )​


But what bring all my attention is that we tested on September 21 on a Relative Basis ( Ratio of XLF over 
​the Mighty SP500 ) a Major Support Trendline that started back on April 5 2013. IF we break that Support Trendline, it is all over for XLF ETF. We can say that Financials are at Crossroads. 
​( See Second Chart Below - Ellipse )​






​​​​



SP500 Financials (XLF) :  At Crossroads ?     $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 )​


Financialiceberg.Com


Financialiceberg.Com