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US Financial Stocks Bullish, But Going Nowhere

  • Written by Syndicated Publisher No Comments Comments
    September 28, 2013

    In this weekend’s video log we look in detail at the all important US Financial Stocks and in particular the SPDR Select Sector Financials (XLF). By all accounts this sector continues to remain in a technically confirmed bullish uptrend but has now run to a point where upside potential is very limited due to heavy overhead price resistance.

    This is not just your run-of-mill price resistance, this is multi-decade stifling overhead price resistance that has been tested across a tight price range nearly 50 times over just a 5 year period between 1998 and 2003.

    So whilst the financials do tend to lead equity markets more broadly in both directions, the suggestion here is that this suffocating overhead price resistance will effectively mean both the US financial stocks and the broader US equity markets are going to be stuck-in-a-rut at current levels for a long time, or potentially and more likely they will both make an important multi-year price top at these levels that eventually leads this sector and the broader equity markets to new multi-decade bear market price lows in the years ahead.

    Please enjoy the video!




    Paul Thomason

    Editor, Elliott Wave Market Service

    Images: via Flickr (licence attribution)