Always consider hidden risks
Financial Sector (XLF) : Weekly Tentative Breakout?
July 25 2016 ( From Tradingview )
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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 got over the 50 WMA (Week Moving Average) two
weeks ago. (See First Chart Below - Thin Red Line)
In fact, the Financial Sector are outperforming slightly the Mighty
SP500 Index on a weekly basis (Ratio of XLF ETF over SPY ETF) only since July 4 2016 week after testing the Support Trendline on a Relative Basis. (See second chart below - Thick Grey Trendline - Ellipse)
Bulls still have a lot of work to do as the Financials are the only sector were we did not have either a new high or a breakout. In fact, among the main ETF sectors of the SP500, it is the worst performer this year...
But what is interesting indeed is that at a time were the Financial Sector is only catching up to the Mighty SP500 Index, we have been testing the past few trading sessions a Major Weekly Resistance Trendline that started back since July 20 2015 week (peak in price in that Bull cycle) but on a very weak trading Volume environment. IF broken, it can give a strong outperformance to the SPY ETF.
(See first chart below - Thick Red Trendline - Ellipse).
Financial Sector (XLF) : Weekly Tentative Breakout? $SPY, $XLF
#Trading #Investing #xlf #SP500
SP500 Financial Sector (XLF)
over SP500 Index (SPY ETF)
SP500 Financial Sector (XLF) - Weekly Candles