TSLA punched right thru that 317ish resistance as if it weren’t there. Still has big potential divergence on the daily time frame but the key word there is “potential” as we’d need to see a bearish crossover on the PPO soon to put in a lower high & “confirm” or finalize the divergence. Even then, divergence is not a buy or sell signal so need to see some decent evidence of a reversal such as a candlestick reversal pattern.

TSLA is way too overbought for an objective long entry here IMO plus the big potential divergences indicate we could get a sudden & big reversal. The short trade from last week took out the 335.30 stop today so now just waiting for the next objective entry, long or short.

I have thoughts that go beyond this but from a pure technical perspective, following the Trump-Pump due to the expectation of deregulation in the financial sector that apparently wasn’t fully priced in (due to how close the race was), XLF has put in a marginal new & still big divergent high.

XLF hasn’t been able to build on the Trump gap up but hasn’t faded it either, simply moving sideways since then. No resistance on a stock or sector when trading at new highs & with the big divergence & overbought conditions (plus economic outlook), personally I wouldn’t buy XLF with your money but I can’t make a strong case to short at this time either.

One thing I am watching for & think has a decent chance of happening in a gap down soon & if so, that could provide an objective short entry if we get a nice clean Island Cluster Top (i.e.- the recent candles make an “Island” separated by gaps on both sides). If so, a short entry with a stop above the top of the Island/recent highs would provide a very objective short entry with an excellent R/R. However, as of now, zero sell signals in place & XLF too frothy to chase here IMO.