By Andrew Nyquist
On December 23rd, I posted about financial sector leadership and the strength in the XLF. However, at the time, it was in need of some consolidation. Below is an excerpt from that blog:
I’ll be watching this level on down to the $16.00 mark going forward (it would be bullish if this area holds).
Not only did the $16.00 mark hold, but the XLF consolidated in a flag formation setting up today’s move higher. Note that the recent lows should be on your radar as key support going forward. A breach of this support near term would be risk-off and highlight the end of financial sector leadership. Also important to watch the near-term uptrend line.
But for now, enjoy the rally. Trade safe, trade disciplined.
No position in any of the securities mentioned at the time of publication.