Browse Symbol Stacks: XLF: XLF weekly sc.png

XLF weekly sc.png

Weekly XLF non-log chart: Is XLF set up for a fall? Always a dangerous call in this market. But the set up seems ready. There has now been a 62% correction of the last major drop in a well defined A,B,C channel. IF my EWT count is correct it is back to the precious 4th wave which is reportedly common. I have noticed most major drops on weekly charts occur with a turn turn in the RSI when it is already <70 has happened the last two times. Also we have bearish divergences in multiple indicators. Waiting for previous recent low and trend-line to be taken out. I would not be surprised to see it soon. Take care. Tom

Comments

ZeroPointMind - gluten freeZeroPointMind - gluten free
the precious 4th wave  
Either you are channeling Prechter (Gollum) or you have automistake enabled ! 
According to EW theory, a 4th wave should correct to the level of the previous 4th wave of one lesser degree. Unless, of course, the wave morphs into something else. 4/22/14
TombTomb
Zero thanks for the feedback. Made me laugh. The EWT count is not really important to my current feelings about this ETF. You are correct that typically the correction is to the "4th wave of lesser degree" esp if there is an extension is in the 3rd wave where it usually occurs. When the extension is in the fifth wave I think it can come back to the 4th wave. But all this counting is so subjective I don't it often helps much. 4/22/14