New banking regulations in EU and elsewhere combined with QE punch bowl drying up is taking wind out of the sails of the Financials.
XLF appears to be struggling at the mid-line of the regression channel again!
Potential 4th failed attempt to cross midline unfolding.
Similar chart pattern last July into Sept, which resulted in a ~10% sell off.
Bearish Engulfing candlestick pattern at recent top.
Several nearer and longer term price gaps to fill to the downside:
Nearer-term gaps
@ $37.75
@ $37.20 and near 50-day MA
@ $36.01 small but there
Several more gaps a bit farther south.
Most indicators rolling over/sick on the daily. XLF near ATHs but the ADX looking like a dead catfish that cant swim anymore...just floating with the current...and the current is taking it down off the regression channel mid-line sooner than most expect.
Target = gap fill near 50-day MA and then a kiss off the 200-day if we get some action to the downside.
Short Oct 15th Puts with $35 dollar strike.
Not financial advice.
XLF appears to be struggling at the mid-line of the regression channel again!
Potential 4th failed attempt to cross midline unfolding.
Similar chart pattern last July into Sept, which resulted in a ~10% sell off.
Bearish Engulfing candlestick pattern at recent top.
Several nearer and longer term price gaps to fill to the downside:
Nearer-term gaps
@ $37.75
@ $37.20 and near 50-day MA
@ $36.01 small but there
Several more gaps a bit farther south.
Most indicators rolling over/sick on the daily. XLF near ATHs but the ADX looking like a dead catfish that cant swim anymore...just floating with the current...and the current is taking it down off the regression channel mid-line sooner than most expect.
Target = gap fill near 50-day MA and then a kiss off the 200-day if we get some action to the downside.
Short Oct 15th Puts with $35 dollar strike.
Not financial advice.