XLF Financials Daily Chart

As the search for the Godot stock market top continues with negative divergence screaming for a major spankdown, the banks have already started to receive a neggie d smackdown in the daily time frame.

The XLF daily chart above shows the red rising wedge a bearish pattern. It is text book for the price collapse out the bottom. The red lines show the universal neggie d across all chart indicators so the top was an easy call in the daily time frame. Stochastics are sub 50% in bear territory so watch the RSI that is only dipping its toe in the sub 50% bear waters for now.

You will know there is lots of downside ahead if the RSI goes sub 50% and if the 50-day MA at 53.01 is lost. This support is holding price up for now call it the 52.80-53.00 support level. If it fails, which is likely, price will next target the price support levels at 52-ish and 51-ish and then the important 200-day MA at 50.47. The orange circles show the juicy gaps down below that will need filled going forward.

Keybot the Quant remains long the stock market but is focused on volatility and banks. You can see that the banks are going to lead the stock market lower. The XLF weekly and monthly charts are neggie d so this is the likely start of the major top and pullback led lower by the banksters.

The Keybot the Quant robot is calling out XLF 53.12 as the key bull/bear line in the sand. If this is lost, it likely signals the start of a major pullback not only for the banksters but the broad stock market (multi-day, multi-week, multi-month). It's fun. Don't you know that you are living in your own Cartoon? If you think we'll rise above, you'd better look around, you'll see, it's a mountain made of sand crumbling under me. Time to turn up the amp. 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 Sunday, 10/5/25: XLF jumped higher Friday morning and then chopped sideways ending at 53.72 that is 60 cents, 1.1%, above the 53.12 line in the sand. Watch this drama closely in the week ahead.

Note Added Saturday, 10/11/25: XLF drops to 52.16 trying to use the 100-day MA at the 52.25 palindrome as support.