I analyze macroeconomic issues from a fundamental perspective, and I analyze market behavior from a technical perspective. Original macroeconomic analysis can be found here and both macro analysis and commentary can be found on my Caps blog. If you like or appreciate my analysis, please add yourself to my Following List

Monday, February 22, 2010

XLF: That'll Do Correction, That'll Do

I have been going crazy trying to figure out an XLF count. Even the uber-bullish case does not work (the overlapping waves at the beginning do not count like a valid series of 1-2's). Yet the move kept extending.

Then it hit me... What about an ABC last leg with a C ending diagonal?

I think it count *very* well including a trendline overshoot and immediate breakdown.

Wishful thinking? Maybe (perhaps probably), but I am actually giddy to see tomorrows open for the first time in the past few days :)

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