XLF- Cant Hide From The Truth
We are in interesting times in the markets
If you have followed us at all you know that we have been pounding the table for the last couple of years that the markets are heading for a GENERATIONAL TOP
Of course as with all Bull markets we have seen almost parabolic price action in some markets at points over that time period since
And of course you see some interesting calls regarding where the markets are heading
Just yesterday we saw calls for SPX 7500, 8000, 10000, etc
While all of those levels are theoretically possible, a trader makes money on whats probable
And the clearest chart we have on where markets are heading is found with XLF
Without turning this into an Elliott Wave seminar we have 2 clear as day patterns that signal the end of the 5 wave impulsive move that started off the Covid lows
ANYTIME you see a triangle appear in a wave that means the NEXT move you see is the LAST move of that wave...and once that final move completes you can expect a significant retracement
As you see we have a by-the-book triangle in the Wave 4 position
But wait theres more! (in our best infomercial voice lol)
Along with the triangle an ENDING DIAGONAL has formed in Wave 5
Ending Diagonals, like triangles, also signal that a wave is ending and a retracement is next
So in a nutshell, we have a clear triangle in Wave 4 that told us the next move (Wave 5 in this instance) would be the last move before a significant retracement AND we are in the final stages of an ending diagonal in Wave 5 which signals that the Wave 5 move is over
Here is the last piece we want you to know:
Triangles are almost COMPLETELY RETRACED 100% OF THE TIME
And as XLF goes so do the broader markets....get ready
If you have followed us at all you know that we have been pounding the table for the last couple of years that the markets are heading for a GENERATIONAL TOP
Of course as with all Bull markets we have seen almost parabolic price action in some markets at points over that time period since
And of course you see some interesting calls regarding where the markets are heading
Just yesterday we saw calls for SPX 7500, 8000, 10000, etc
While all of those levels are theoretically possible, a trader makes money on whats probable
And the clearest chart we have on where markets are heading is found with XLF
Without turning this into an Elliott Wave seminar we have 2 clear as day patterns that signal the end of the 5 wave impulsive move that started off the Covid lows
ANYTIME you see a triangle appear in a wave that means the NEXT move you see is the LAST move of that wave...and once that final move completes you can expect a significant retracement
As you see we have a by-the-book triangle in the Wave 4 position
But wait theres more! (in our best infomercial voice lol)
Along with the triangle an ENDING DIAGONAL has formed in Wave 5
Ending Diagonals, like triangles, also signal that a wave is ending and a retracement is next
So in a nutshell, we have a clear triangle in Wave 4 that told us the next move (Wave 5 in this instance) would be the last move before a significant retracement AND we are in the final stages of an ending diagonal in Wave 5 which signals that the Wave 5 move is over
Here is the last piece we want you to know:
Triangles are almost COMPLETELY RETRACED 100% OF THE TIME
And as XLF goes so do the broader markets....get ready
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