S&P 500, XLF, US Dollar, Inverse ETFs — Charts and Indicators
The market is overbought and here’s my case
Click charts to enlarge
Looks good. Low-volume week and WFC pre-announcement manipulation or not, the fact is the pattern I was watching played out as expected. Possible scenarios:
– fills the gap and goes back up
– consolidates just above new support level, this would be the proper behavior for a high volume breakout
U.S. Dollar Index
Despite bullish patterns that worked out on the financials and SPX (and XLU and probably some other indices), oddly enough the U.S. dollar is showing the same pattern. Should it break out, this rally may die. $US is a factor that may work against the continuation of the move up. It’s one of those things that works, until it doesn’t.