Financial Select Sector SPDR ETF (XLF) -- A Sign of the Times?
by Sam Collins 12/20/07
Financial Select Sector SPDR ETF (XLF) -- This index of the financial components in the S&P 500 (SPX) includes an array of diversified financial stocks, from investment management to commercial and investment banking. Since May 31, the index has tumbled by more than 25% and now appears to be trying to establish a bottom with the stochastic arching up.
by Sam Collins 12/20/07
Financial Select Sector SPDR ETF (XLF) -- This index of the financial components in the S&P 500 (SPX) includes an array of diversified financial stocks, from investment management to commercial and investment banking. Since May 31, the index has tumbled by more than 25% and now appears to be trying to establish a bottom with the stochastic arching up.
But the Nov. 26 low at $28.10 must hold or it will add a new leg to an already-steep decline. If that were to occur, it is doubtful that the S&P 500 lows made in August and November at 1,407 could hold, either.
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Watch the DJU index for a possible future signal.
Looking at Dow Theory can reveal what's going on beyond our usual internal indicators, sentiment numbers, etc.
CHK's recent new low does not alter its outlook; use it to buy shares at a discount.
The time-tested Moving Average Convergence/Divergence generated bearish indicators for the DJI, the SPX and the NYA.
