Always consider hidden risks
Financial Sector (XLF) : A Critical Test? 
 July 15 2016 ( From Tradingview  )
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​​The Situation

​​​​​​​​SP500 ​Financials (XLF ETF)​ previous yearly low was made on
​February 11 then ​at 19.53, level last seen in the mini flash crash on
​August 24 2015.​ 
​​(See first chart below)​  It did a second low on June 27
​at 21.32 on post-Brexit Fears. ​And since then
, the XLF ETF is within
​a higher ​highs and higher lows technical pattern.
(See first chart below)

The XLF ETF finally broke on May 24 a ​Minor Resistance Trendli

​​In fat, the Financial Sector are outperforming the Mighty SP500 Index
​(Ratio of XLF ETF over SPY ETF) only since July 6 2016 after testing the
Support Trendline on a Relative Basis.​ 
(See second chart below - Thick Blue Trendline - Ellipse)​
​Bulls still have a lot of work to do as we need to break the 200 DMA ​(Day Moving ​Average) on a relative basis (See second chart below - Green Line)​ and the next Major Resistance Trendline (See second chart below - Thick Red Trendline)​ to open the door for a real major breakout on the SP500 ​Financials (XLF ETF).​

But what is interesting indeed is that at a time were the Financial Sector is only catching up to the Mighty SP500 Index, we are testing a Major Daily Resistance Trendline that started back since July 23 2015 (peak in price in that Bull cycle). IF broken, it can give a strong outperformance to the SPY ETF.

​(See first chart below - Thick Red Trendline - Ellipse).


Financial Sector (XLF) : A Critical Test?     $SPY, $XLF   #Trading #Investing  #xlf #SP500

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

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