Bullish chart?

Financial stocks are very important. If they reach new highs, they signal a healing system.

They have been consolidating since last August. A break above the resistance level shown on the chart will be a bullish development (click on the chart to enlarge it).

XLF may go above it. Why? Look at the volume. It soared lately -- well above its average of the past few months. The last time volume surged was in March 2009 and XLF soared.

Will XLF move above the resistance level? Will it signal the beginning of the next leg of the bull market? Stay tuned.

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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