Good morning, everyone, and welcome to Wednesday. In spite of another everything-is-green nighttime session, I continue to beat my XLF drum, as I consider it a critically important chart to track. This ETF, which represents financial stocks, continues to grind its way through what I contend is a momentous (albeit glacially-slow) topping pattern.
Let’s cut away all the noise. All the horizontals. All the trendlines. Even the price bars themselves. Let’s just leave the bare essentials of my trio of exponential moving averages. Please take note of the behavior of this instrument just prior to the financial crisis and what’s going on right now.