XLF Financials ETF 2-Hour Chart; Overbot; Rising Wedge; Negative Divergence; Upper Band Violation; Price Extended

Here are the banks. XLF also contains insurance companies and is typically known to represent the large money-center banks such as JPM, GS, MS, all that rot. KRE represents the regional banks that have been flying with the steeper yield curve. Regionals make their money on loans so rates are key but the large investment banks rock and roll on trading. Banks have been on a tear higher.

But, all things come to an end. Too much party wine will make you sick and want to lay down on the floor. You can watch the XLF 2-hour chart and see the top form in real-time. The XLF daily chart is neggie d across all indicators although the MACD is threatening to break out further. In general, the daily chart is cooked. Thus, the 2-hour will help pinpoint where this top is at. The two candlesticks for today have matching highs but all the indicators are neggie d. It is done. Short it at will. XLF should drop for the next several days.

Price tagged the upper band, or within 3 cents, close enough for government work, so the middle band at 34.26 is on the table and lower band at 33.55. The collapses from rising wedges can be quite dramatic.

If you made money in banks, take it and exit stage right. Keystone started into shorting the banks yesterday via inverse ETF's and adding to the shorts.

If you bring up the XLF weekly chart, you can see it is long and strong with the MACD and RSI, thus, either one or two jog moves are needed to top it out on the weekly. That is 2 to 4 candlesticks which is 2 to 4 weeks. So the banks will sell off for the days forward but then recover again, say a week or two out, and come back up to these highs again, and if the weekly goes neggie d, a multi-week top will be placed (probably between 3/26/21 and 4/12/21). The top on the weekly chart can be called, say, at the end of this month or early April.

In this near-term, short is the play but as mentioned with the weekly chart, do not marry the trade. Take the money after a few days drop and then wait for it to come up again and when the RSI and MACD go neggie d on the weekly, short the Hell out of it. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

Note Added 11:54 AM EST: XLF 34.74.

Note Added 1:59 PM EST: XLF 34.666.

Note Added Monday Morning, 3/15/21, at 7:31 AM EST: XLF finished last week at 34.77. The MACD on the weekly chart is trying to squeeze out that tiny higher high to keep banks elevated for a few more days (Federal Reserve Chairman Powell is on tap Wednesday afternoon ready to coo dovishly) into next week. This weeks candlestick will likely begin with a matching price high so watch to see if the MACD on the daily is neggie d, if so, the top is in on the daily basis and a multi-day downturn for banks will begin. XLF is up to 34.89 in the pre-market another matching price high. Bring up the 2-hour and as it prints make sure all the indicators are neggie d and this should be the top on the 2-hour. So short-term down starting now but XLF will come back up on the weekly basis after several days of softness.