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.

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