Despite yesterday's turn, $XLF still looks bearish
Yesterday's turn, following the attempt to break the 2060$ in SPX has created a long tail Pinbar in $XLF.
Considering that we experience a pretty volatile summer market, I'm very cautious with price action patterns and I don't jump to conclusions when ever I see a strong price movement ..and it doesn't matter the direction of the move.
That is why I took a bearish position on $DAX and $SPX following Monday's rally and that is why I was bullish yesterday when $SPX reached 2060$ and $DAX touched the 11,000 support zone.
Back to $XLF - The important thing to take out of $XLF chart is that the price broke below the rising Wedge pattern, providing a bearish signal. As long as the price stays below this pattern I will focus on bearish opportunities.
The second thing is that the price is still below the 25$ resistance zone.
I see two zones I'm interesting in - 25$ and 25.2$.
The first is the current structure zone - now resistance.
The second is the re-test of the bottom of the broken Wedge and the Fast SMA line (now resistance).
The final target level for THIS scenario is the 200 SMA line.
Considering that we experience a pretty volatile summer market, I'm very cautious with price action patterns and I don't jump to conclusions when ever I see a strong price movement ..and it doesn't matter the direction of the move.
That is why I took a bearish position on $DAX and $SPX following Monday's rally and that is why I was bullish yesterday when $SPX reached 2060$ and $DAX touched the 11,000 support zone.
Back to $XLF - The important thing to take out of $XLF chart is that the price broke below the rising Wedge pattern, providing a bearish signal. As long as the price stays below this pattern I will focus on bearish opportunities.
The second thing is that the price is still below the 25$ resistance zone.
I see two zones I'm interesting in - 25$ and 25.2$.
The first is the current structure zone - now resistance.
The second is the re-test of the bottom of the broken Wedge and the Fast SMA line (now resistance).
The final target level for THIS scenario is the 200 SMA line.