SELECT SECTOR SPDR CONSUMER STAPLES ETF - XLP
Monthly chart shows huge selling pressure during the month of June 2008. While the bulls managed to make a slightly higher high, the bears managed to take the price back down below the key LIS (old resistance becomes new support) of $28.88. IF we have 5 waves up, THEN look for an abc 3 wave retracement of the whole leg up. The new high was made with regular divergence. We also have a possible lower high being made. No buy signal/pattern evident on this timeframe. All I see is a sell signal/pattern being formed at this time.
Weekly chart shows increasing selling pressure the last 2 weeks. On this timeframe, we have a lower high made, right at the .786 fib resistance. Price is currently below all key moving averages. At the very least, look for a re-test of the current short term low at $24.40.
Daily chart shows the bears were in a hurry to exit their positions on Thursday morning, as they gapped down the open, creating a kicker signal type pattern. This pattern indicates a major change in investor/trader sentiment. No buy signal/pattern evident on this timeframe as of yet. Pattern being played out suggests lower lows highly likely.
No comments:
Post a Comment