-XLF daily what a move today. First, we gapped down at open, then we fall, then buyers came in and drive XLF to 0.6% up, but then the price hit major resistance, neckline, and drop hard on strong volume. The last hour's volume was a huge drop and the volume was like 4 hours before together. When I checked 1 H candle I can say retailer traders played the whole day with fire and in the last hour of trading big boys sold out.
The whole week's volume is smaller than 20 day's average which indicates this is still only a bear market rally and is not confirming price action.
However, XLF is above all significant MA which is bullish.
RSI is in the mid-overbought territory and is ready for a correction.
MACD also doesn't confirm this price move and has negative divergences which are bearish, the same as RSI.
Overall: Banks are lagging in this show and in this move-up, due to their pretty bad financial report. Also, most banks said they expect a weaker next quarter which can't be too positive for the sector r as a whole. XLF formed a big shooting star reversal pattern at the top of the leg which is very bearish. RSI and MACD are confirming moves are not strong same as the volume.
Therefore Consistent trades put a sell signal at XLF.
The whole week's volume is smaller than 20 day's average which indicates this is still only a bear market rally and is not confirming price action.
However, XLF is above all significant MA which is bullish.
RSI is in the mid-overbought territory and is ready for a correction.
MACD also doesn't confirm this price move and has negative divergences which are bearish, the same as RSI.
Overall: Banks are lagging in this show and in this move-up, due to their pretty bad financial report. Also, most banks said they expect a weaker next quarter which can't be too positive for the sector r as a whole. XLF formed a big shooting star reversal pattern at the top of the leg which is very bearish. RSI and MACD are confirming moves are not strong same as the volume.
Therefore Consistent trades put a sell signal at XLF.
Consistency is the key of success....