An ugly picture

The trend of XLF (Financials Sector SPDR) is an ugly one (click on the graph to enlarge it).

XLF violated on the downside the crucial $14 level, a very important support level.

The second trend to notice is that XLF is starting a possible pattern of lower highs and lower lows.

A down-sloped trendline in financial stocks and weak commodities is not what happens in a rising market. Hopefully, these trends will change soon.

George Dagnino, PhD
Editor, The Peter Dag Portfolio. Since 1977
Ranked Top Market Timer in 2009 and 2010 by Timer Digest

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