Tuesday, March 31, 2009
XLF Should Have Topped and be Headed Sharply Lower; March 31, 2009
The XLF showed a lot of strength today, even at the close compared to other sectors and the major indices. However I see a possible ABC three wave correction occuring today which means heavy selling should hit the sector tomorrow now that the 1st quarter portfolio jossling is out of the way. A break of the wave A high at $8.96 would confirm the 3 wave rise, but if it breaks above $8.96 beforehand, it will hurt the bearish outlook severely.
I remain short the XLF.