Support the Wall Street Examiner! Choose your level of support to receive a free proprietary report as my thanks. Click the button below to see your options. Become a Patron!

XLF Breakout On Brink of Failure

This is a syndicated repost courtesy of Slope of Hope. To view original, click here. Reposted with permission.

It was with some concern a few days ago I expressed in a post to my Gold and Diamond members that the financials were breaking to the upside. The failure of the XLF is/was an important part of the prospect for any downtrend in equities. As of this writing, this breakout remains in place, but XLF demands close and constant observation.

Liquidity moves markets!

Follow the money. Find the profits! 

Specifically, there are three levels that I am watching: 27.52, 27.10, and 26.75. Breaking any of these would help spoil the bullish breakout and its potential, particularly a failure of 26.75, which would ruin the pattern utterly. As shown below, the XLF had emerged above its long-term descending trendline, but not all hope is lost – – plenty of financial companies reported last night, and it’s not exactly looking like a blowout follow-through is in the offing. Keep an eye on XLF!

Wall Street Examiner Disclosure:Lee Adler, The Wall Street Examiner reposts third party content with the permission of the publisher. I curate posts here on the basis of whether they represent an interesting and logical point of view, that may or may not agree with my own views. Some of the content includes the original publisher's promotional messages. I may receive promotional consideration on a contingent basis, when paid subscriptions result. The opinions expressed in these reposts are not those of the Wall Street Examiner or Lee Adler, unless authored by me, under my byline. No endorsement of third party content is either expressed or implied by posting the content. Do your own due diligence when considering the offerings of information providers.

Try Lee Adler's Technical Trader risk free for 90 days! Follow the money. Find the profits!

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.