Bank stocks rose at least 2.5 percent, led by Bank of America, Citigroup, Goldman Sachs and J.P. Morgan Chase. The Financial Select Sector SPDR ETF (XLF) jumped 2.29 percent to 27.28, down 2.2 percent YTD. Now the question is whether recent rally is a beginning of a new upswing or it’s merely a dead cat bounce? Below is an update look at a trade in XLF.
The graphic below is from our “U.S. Market Trading Map”, show the near-term technical bias and trading ranges. As shown, the underlying is in a short-term bullish trend when the price bars are painted in green. The underlying is in a short-term bearish trend when the price bars are painted in red.
Chart 1.1 – Financial Select Sector SPDR ETF (weekly)
Our “U.S. Market Trading Map” painted XLF bars in red (sell) – see area ‘A’ in the chart. After a strong run of outperformance since early 2016, XLF peaked in early 2018 and rolled over. The early February correction found support at the 23.6% Fibonacci retracement. However, the late June selloff pushed the ETF below the 23.6% Fibonacci retracement and the 1-year moving average. That level was significant…Click here to read more.
You see, our trend-following system is very unique as it attempts to pick turns before others see them. Timing is everything and if you’ve applied our system correctly, you should have made a killing in any markets.
This is just an example of many successful trades that our member had enjoyed recently. After all, aren’t you glad you subscribed?
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