22
Jul
Since last Tuesday’s short-term bottom, the S&P has rallied 6.4% and the XLF, which tracks the financial sector, has rallied a massive 34%. Bear market rallies are known for their large moves in short time periods. Traders should be careful chasing a rally that has come so far so quickly. In the chart below, you will see that the XLF pierced its 50 moving average in today’s session. This was the first hit of this level since May 19 and should serve as strong resistance. Also, make note that the XLF has retraced 50% of the move from the peak on May 2 to the low on July 15.
Good call, Craig. A pullback is due. Let’s see tomorrow. Have a good night!~
Time to load up on SKF.
Good call on the chart
Informative to the beginners!
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with oil going down will raise us dollar and will help rally, yes a huge spike up from lows, but far below the disasterous percentage from the highs.
UYG high was 69 and is trading at about 22.50
XLF high was 39 or something close and now at 22.10
IF it goes down, it will be up as without a financial rally it really is stock picking only. FXI popped out of its trough, AAPL finally got what it deserves (overhyped), and probably time to watch the xle. When oil hits 115 I buy USO, GLD is a buy end of month