Yesterday afternoon in TeleChart Platinum chat I wrote, “XLF should move higher from here.”
XLF actually moved lower into yesterday’s close, but is up nicely today and has potential for some follow-through on the upside. My hourly chart shows a constructive profile for MACD, TSV and Worden Stochastic. The volume-weighted MACD completed a positive crossover a couple of days ago (the start of the green price bars). TSV has been holding above its moving average over the past one to two days and now finds itself rather decisively above the moving average. It will be important for TSV to move up through the zero-line, as a result of this rally. And finally in the bottom pane, my Worden Stochastic is turning up with conviction (above the 50 level) from an oversold condition, which has persisted for nearly two weeks. XLF has moved up through my short-term downtrend line and is testing its 50-day price moving average where some resistance is likely to be encountered. Remember, I believe TSV’s test of the zero-line will be key to the sustainability of this rally.