XLF Financials Daily Chart H&S Downward Channel Bear Market 20% Drop

XLF financials fall into a bear market now falling 21.5% from the February top, well in excess of the 20% threshold that many traders consider as a guideline for a bearish trend change. The blue lines show th eoverbot conditions, rising wedge adn negative divergence that identified the top as forecasted in real time when it was occurring. This led to the downward channel for the last half year with lower lows and lower highs.

The red lines show the H&S that easily hit the 14.5-ish target. Now we can expand the H&S further and call the 14.5-ish level a neckline of a larger H&S. Thus, head at 17-ish, neck line at 14.5-ish will target the 12.0 level for the months ahead. The chart is extremely sick but considering the last six weeks of pain, note the light green lines for the indicators showing positive divergence. The RSI is starting to leak lower and the histogram is sloping negatively so they want to see matching or lower prices in the future, but for the near term, the coming days/weeks, a bounce would be prudent from these levels.

Semiconductors and financials both puked starting in February, the semi's have lost even more ground, 25%, placing them in bear market territory as well. These are vital bellwethers of the nation's economy. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here or any links connected to this information. Consult your financial advisor before making any investment decision.