XLF

XLF has to resolve the pattern. The structure is anticipating a strong move. No need to front run this market. It's better to wait for a definition.

Another chance for bears..

To tank this market.

Back in Track

It seems they want to force prices to touch the descending resistance, before letting the market fall. That is exacty where both channels would converge, as stated 2 weeks ago. Please refer to 1st May post.
That's the best bulls can ask for.

The perfect Short Setup?

Everytime the market touched the bottom of the channel it has turned quickly and bounce like a rocket. Now I think the "Buy the dip" strategy will fail. Monday opening will be key for this market. A gap down on monday below that line would put the market definitely out of the channel and would trigger some serious selloff.
They better hold the double bottom. If not, Bulls will be in serious trouble.

43 days ST Top is in

XLF bounced again just at the bottom of the channel. Until bears can break down this ST channel, this isn't going to accelerate to the downside. That is what they should test next days. Still a double Top at 13 is in play. So beware.

"It's now more than a month since I was calling for this pattern medium term. I feel we are getting pretty close to a turning point ST. The lower the Vix goes, the stronger will be the revearsal.43 days from 6th March get us to 7th May. That's exactly the lenght we had on the last big drop (Jan-March 09'). The simetry is quite impressive. If this plays out as I think, when this leg finishes, we would see a sharp retracement (150 points at least) to get the right shoulder, maybe 200 to get SPX to 750's again.Although we could extend this rally some points, we "must" see a very sharp and quick drop from these levels (940-960) for this pattern to play out MT."

Last week I wrote this. And it seems 930 marked a double Top. We'll see how we get the right shoulder (-10/-15% decline).

XLF - DJT

Dow Transport, leading the decline.

Trying to find support.

NDQ - SPY - DIA - XLF

In red, 200 DMA.

Wells Fargo - XLF

XLF uptrending channel.

WFC will trigger a buy signal on any gap higher tomorrow morning.

Looking at The Big picture..

It's now more than a month since I was calling for this pattern medium term. I feel we are getting pretty close to a turning point ST.43 days from 6th March get us to 7th May. That's exactly the lenght we had on the last big drop (Jan-March 09'). The simetry is quite impressive. If this plays out as I think, when this leg finishes, we would see a sharp retracement (150 points at least) to get the right shoulder, maybe 200 to get SPX to 750's again.Although we could extend this rally some points,, we "must" see a very sharp and quick drop from these levels (940-960), for this pattern to play out.

XLF again..

Today it has broken to the upside with a big green candle. We mantain the 13-14 Target for this H&S pattern in prgress.

Morgan Stanley

As we said 2 days ago MS was a perfect buying setup (21.56). Today is literally exploding. +20% gain in 3 days.