Wednesday, January 6, 2010

XLF breakout on the weekly chart

You heard me refer to the breakout on the XLF yesterday, well here is the visual evidence. After much weakness the last 2 months in all the financials across the board, the bulls potentially have something going here.

Now we must close the end of the week above this trendline otherwise this will be just another shakeout. But if it holds could be the catalyst for SPX 1220 at least, yes that's right 1220!

Now that doesn't mean we couldn't get a small correction first to entice more bulls to jump on the bandwagon, but it is something to watch carefully right now.