I had an inquiry on XLF (Financial Sector ETF) from member @dpandita. After essentially hitting the measured target for the 2015-2016 Inverse Head & Shoulders pattern, XLF has been forming a Descending Broadening Wedge Pattern. An upside breakdown of the pattern & break above the recent highs would be bullish while a downside break of the pattern would obviously have bearish implications.
XLF daily Feb 3rd
The catalyst behind today’s nearly 2% gain in XLF as well as the 2.58% gain in KRE (Regional Bank ETF) & the primary driver of why SPY & IWM significantly outperformed QQQ (which doesn’t contain any financials and IWM being very top heavy regional banks & other financials) today was the following headline: Trump Signs Executive Actions Toward Scaling Back Dodd-Frank (source: WSJ.com)