Wednesday, July 16, 2008

Financials (XLF) have had enough?

(Looks like Picasa Web Albums is down - image will appear as soon as Blogger will fix the problem )

Above is 10 years monthly chart of (XLF)
Very interesting broadening chart pattern
. It is very close to been classic "Right angled and ascending broadening formation" ... close...
What interest me as of now is not "What" it is, but "How it will behave right at the lower trendline.
My take would be ( and I was long (XLF) Aug/Sep Calls for a good week now, bleeding indeed so far) - bounce is coming, may be not today or tomorrow, but it is here