03/27/23
Despite the contention of noted 20th century philosopher James Todd Smith, we are looking at a comeback today.
(Smith is perhaps better known as LL Cool J)
I’ll promise to leave the singing and Billboard charts to him – but he’ll have to let me handle these charts.
We looked at the Financial Select Sector SPDR ETF (XLF) last week – and today we are checking in to see how things are going.
We’ve zoomed in here and also flipped down to the 4-hour chart.
Why? Just a bit more detail.
In the near term, the sector just may have overshot the down move and is looking to spring back up…
You’ll recall that last week, I mentioned the following:
Well, on both the daily and 4-hour charts, those four pennies turned into nearly a dollar in the wrong direction…
The EMAs on XLF are stacked bearish.
Now, looking at the chart, the two X’s mark the first failures at the 8ema and 13ema, respectively…
What does that tell us? The ETF is looking for a comeback.
But it’ll have to take over the 8 (orange), 13 (red), and 21 (green) EMAs for most investors who are looking for a swing…
Let’s indulge the early birds, though.
From where we charted this last week, XLF bottomed clean (a little too clean) at $30.90.
When this happens, market makers are going to push the buyers who bought at the perceived support area and punch it below to loosen up some money.
From here, you could use each of the moving averages as price targets (noted and color-coordinated on the right pane).
Ultimately, the area marked in red would be the main target at $33.50.
On the lower chart, FINRA’s reporting a significant drop in short volume and the Triple Stochastic is quietly inching higher…
Risky trade… but that’s what the market is about.
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