Figure 1 is a weekly chart of the S&P Select SPDR Financial Fund (symbol:
XLF). The red and black dots are on the price chart are key pivot points,
which represent areas of buying (support) and selling (resistance).
Figure 1. XLF/ weekly
This is a widely followed ETF that correlates highly with the market. As the
banks go, so goes the market. Currently, price is below the three most recent
key pivots and there is only 1 interpretation for this finding: bear market. A
weekly close below 13.76 would seal the deal. Support levels are at 12.38.
Disclaimer: Guy M. Lerner is the editor and founder
of The Technical Take blog. His commentary on the financial markets
is based upon information thought to be reliable and is not meant as investment
advice. Under no circumstances does the information in his columns represent
a recommendation to buy or sell stocks. Lerner may on occasion hold positions
in the securities mentioned in his columns and on the Web site; in all instances,
all positions are fully disclosed at http://thetechnicaltakedotcom.blogspot.com/.
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