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Major Test for XLF ETF

The financial ETF XLF is in the midst of re-testing the lows made in January 2008.

 xlf.png

Re-testing is a fancy way of saying:

  1. We made a low in early January 2008
  2. Higher prices were rejected (easily seen on the chart)
  3. And now the old low price is being tested to see if buyers will step up
Why does this happen? Because in most cases, all relevant information is already reflected by prices, and prices move in trends. If buyers do not step up and XLF breaks the price lows made in early January, I suspect the rest of the market will begin to make new lows. New lows in XLF will likely mean more bad news from the financials.
Posted on Thursday, March 6, 2008 at 02:32PM by Registered CommenterMichael | CommentsPost a Comment

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