XLF ready for 10 to 12% haircut
In the most recent break out, XLF has left two enticing gaps – one around $12.6 mark, and the other one around $13 mark. Aug 7th candle looks somewhat like a reversal candle.
$13 also marked the swing top in May. And $12.6 acted as a solid resistance for most of May, June and July. Any down move should take XLF down to $13 region pretty quickly. I will not be too greedy trying to wait for XLF to fill the $12.6 mark. If I am short, I will cover around XLF $13 mark. 10% haircut should move FAZ up to $33-$35, SKF to $33 and FAS down to $60.
The oscillators and BB on XLF look exactly same as those on the IYR charts in the posting on IYR. As always, any love shared is appreciated.
