Thursday, April 2, 2009
XLF Headed Lower, Risk/Reward Outstanding; April 2, 2009
The XLF did not plummet like I projected yesterday, but after the inditial pop at the open it sold off all day. Another interesting tidbit is that it halted again underneath $9.70 resistance yet the stock market made new highs. As long as this divergence exists, and momentum indicators (RSI, MACD) keeps making lower highs, I'm immediately bearish this sector. I did not close any of my XLF position today because of the reasons I mentioned above. A strong break of $9.70 tomorrow will probably get me to close half my position and let the rest of my option position just run into expiration.