Today the market stalled heading into the close, but at this point I think it’s going to take some sort of blow off top to put an ending to this upward grind. It feels like everyday is some sort of twisted groudhog day for the bears as every threat of a downward move is thwarted by more buying, but we all know this can’t continue forever. However, until we get some sort of catalyst or blow off move I think we churn higher until every last short is squeezed.

The Financials (XLF) are a good example of how this market moves higher, but doesn’t get too extended. It hurdles over each new level of resistance, consolidates, and moves higher. I think this should get to the $15.30 level for sure, (possibly higher) based on this pattern. As of Friday’s close this is a very bullish pattern minus the low volume.

3 Responses to “Slowly But Surely For The Financials”

  1. will gu Says:

    How does Technical analysis account properly for dividends, do those things gap the charts and distort them?

  2. jeff pierce Says:

    William,

    I don’t even pay attention to dividends when using TA. I do however try to avoid holding thru earnings as it is too much of a wildcard.

  3. abdul Says:

    ES failed to break out from the top resistance and that resulted me giving back almost all the profit I make for this week. Never trust that the market is your friend again because it’s not. Next week I expected a uni-directional day on the upside if Bernanke stay cool on Wednesday. I hope to catch the 2 percent rally on ES. I have upgraded my setup for ES to three timeframe, 1000, 3000, and 9000 ticks and also open up a 2 minute tick chart alongside my trade entry. Believe me, this chart is invisible for most amateur traders. Good luck and Cheers Bros.

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