XLF Technicals

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SP500 Financials (XLF) : A WC Break Out?
March 18 2016 ( From Tradingview )

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The Situation

SP500 Financials (XLF ETF) previous low was made on February 11 then
at 19.53, level last seen in the mini flash crash on August 24 2015.
( See 1st chart below )

Since then, we have seen a very painful grind from the XLF ETF to reach
finally the Major Resistance Trendline at 22.52 that started back on
December 2 2015. ( 1rst chart below - Thick Blue Trendline - Ellipse )

Not only we reached that resistance trendline, but we closed above
on March 17 2016. So a tiny break out for me as the Volume did not
pick up on the XLF ETF as it should. So we have a Break Out Without Conviction (WC).
( 1rst chart below - Bottom Right - Ellipse )

Bulls still have a lot of work to do as we need to break the 200 DMA ( Day Moving Average ) at 23.50 ( as of March 17 ) to open the door for the next Major Resistance Trendline at 24.19.
( 1rst chart below - Thick BlueTrendline )

But the most interesting Technical Factor for me, is that the Financials are underperforming the Mighty SP500 Index ( Ratio of XLF ETF over SPY ETF ) since March 4 2016 when it reached on a Relative basis a level near the 50 DMA ( Day Moving Average ). ( See 2nd chart below - Red Line )

.

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

Daily RATIO
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 )

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