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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